Dear Members of Parliament,

We, the undersigned, urgently call for the implementation of stricter regulations surrounding randomized loot box mechanics in video games.

Our concerns are rooted in the striking similarities between loot boxes and traditional forms of gambling, which raise significant ethical and societal concerns.

This has been downplayed by game publishers who decry the similarities between common gambling and loot boxes, but the economic damage is just as severe and wider reaching, due to the lack of age restrictions on these predatory transactions. In extreme cases, individuals have been known to spend tens, or even hundreds of thousands of dollars on these digital transactions - online, these extreme spenders are even referred to as "whales" and the predatory nature of some game creators to focus on these individuals has been dubbed "whale hunting".

The claim that lootboxes can not be considered gambling because it does not give a monetary reward does not hold up, as it is common knowledge that online marketplaces exist where people can sell or trade these online assets, creating a tangible reward, all they are doing is trying to shield themselves by distancing themselves from these marketplaces.

In addition to this, a number of "gacha" or lootbox centric games add a further layer of predatory mechanics by implementing VIP levels that require spending hundreds or even thousands of dollars to unlock exclusive bonuses (this has led to the coining of the term "pay-to-win" among the gamer ecosphere.)

In addition to the previously outlined information, we emphasize the following points:

Age Restriction: The resemblance between loot boxes and gambling necessitates a rigorous age restriction, with games featuring randomized loot box mechanics rated for individuals aged 18 years and older. This approach aligns with existing regulations on traditional gambling activities, acknowledging the potential for addiction and financial risk.

Age Verification: Given the parallels between loot boxes and gambling, a robust age verification process is imperative to prevent minors from engaging in potentially harmful transactions. The implementation of effective age verification mechanisms will ensure that access to these features is granted only to legally eligible individuals.

Maximum Purchase Limits: In light of the gambling-like nature of loot boxes, it is crucial to allow strict, but voluntary maximum purchase limits. Allowing players to set and alter these limits periodically helps mitigate the risk of excessive spending, promoting responsible gaming behavior and safeguarding individuals from financial harm. Such a system is already used in gambling by Lotto New Zealand.

Pity Mechanic Disclosure: Recognizing the similarities between loot boxes and gambling odds, games lacking a guaranteed reward system must explicitly disclose this information on the purchase screen. Users should be informed that the outcome of purchasing loot boxes is uncertain, irrespective of the number acquired. This transparency empowers players to make informed decisions about their participation in these in-game transactions.

The striking parallels between loot boxes and gambling demand immediate attention. By implementing these proposed regulations, we aim to address the ethical concerns associated with the potential harm inflicted by loot box mechanics on players, particularly minors.

We appreciate your consideration of this urgent matter and hope that you will take the necessary steps to prioritize the well-being of our citizens and uphold responsible gaming practices.