The decision contradicts that of the Belgian Gaming Commission (BCG), which found that the video game feature recently included in the new Star Wars Battlefront II does count as gambling.

The UKGC Executive Director, Tim Miller, released a statement explaining that the regulator does not see loot boxes as gambling as you can’t exchange the items for real money, as per British law.

“A key factor in deciding if that line has been crossed is whether in-game items acquired ‘via a game of chance’ can be considered money or money’s worth,” Miller said in the statement.

“In practical terms, this means that where in-game items obtained via loot boxes are confined for use within the game and cannot be cashed out it is unlikely to be caught as a licensable gambling activity.

“In those cases, our legal powers would not allow us to step in.”

The UKGC released a position paper in 2016 identifying the potential risks associated with loot boxes. However, it refuses to classify loot boxes as gambling, even after a petition with 10,000 signatures, called “Adapt gambling laws to include gambling in video games which target children”, forced the UKGC to review its position last month.

The UKGC has stepped in when it comes to third parties specialising in skins gambling and prosecuted operators that allowed gamers to bet on virtual currencies using real-world value.

However, the statement suggests it may look into video game regulation in the future.

“Many parents are not interested in whether an activity meets a legal definition of ‘gambling’,” Miller said in the statement.

“Their main concern is whether there is a product out there that could present a risk to their children.

“We are concerned with the growth in examples where the line between video gaming and gambling is becoming increasingly blurred.

“Where it does meet the definition of gambling it is our job to ensure that children are protected and we have lots of rules in place, like age verification requirements, to do that.”

Miller goes on to explain that parents still expect the regulator to put protections in place for products that do not meet the meaning of gambling.

“We have a long track record in keeping children safe and we are keen to share our experiences and expertise with others that have a similar responsibility,” Miller said.

“Whether gambling or not, we all have a responsibility to keep children and young people safe.”

Loot boxes aren’t exclusive to Battlefront II, with players eligible to earn loot boxes in Overwatch too. However, the Electronic Arts’ game has caused controversy since you can purchase the loot boxes with real money.

The BCG recently investigated and declared all in-game purchases in video games as harmful, and is seeking to ban loot boxes.

US lawmakers have taken the same stance, while Australian regulators have clashed, with Victoria siding with the BCG and Queensland siding with the UKGC.

EA released a statement explaining that loot boxes “are not gambling” as “the gamer makes the decision.”

Our opinion: How does the UKGC draw the line?

The UKGC’s stance is an interesting one. In recent weeks the regulator has been cracking down on online casino operators featuring cartoon graphics that could appeal to children.

These graphics reportedly attract children to the gambling sites. However, these sites have age verification tools preventing children from playing the games for real money. If they do happen upon the site, they can only play these games for play money.

Since the UKGC seems to define gambling as an activity which only takes place if players can cash out, it is somewhat confusing why it targeted licensed casino operators in that respect.

The UKGC needs to make a clear stance on what gambling means, especially when it has to do with children.

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Last week, we reported that the BGC had launched an investigation into whether purchasing loot boxes counts as gambling ahead of the new Stars Battlefront II release.

The BCG has since announced that the nature of risking money for the contents of a loot or crate box, where you could get something you don’t want, is the definition of gambling.

According to VTM News (via Google translate), the BCG believes that the combination of money and video gaming counts as gambling due to the potential of addiction.

Belgium’s Minister of Justice, Koen Geens, supports the BCG’s stance, stating that mixing money and video gaming “is dangerous” for children and their mental health.

He reportedly wants to ban all in-game purchases in video games in not only Belgium but the rest of Europe too. He explained that the Belgian government would first be looking into prohibiting loot boxes in the country, and then sending officials to other parts of the world to have an open dialogue on the video game feature.

Critics from all over the world have questioned the nature of loot boxes after Electronic Arts (EA) revealed players could spend money to gain an advantage when building your character in the new StarWars game. However, the loot box could be worthless, which is where the risk element arises.

There is also the argument that players could spend more money to get more advantages and increase your chances of winning, giving players who have more cash an unfair lead.

Even players have expressed their concerns over unfair loot practices, resulting in EA DICE temporarily removing the loot boxes from the game.

“We hear you loud and clear, so we’re turning off all in-game purchases,” a statement by DICE General Manager, Oskar Gabrielson, said.

“We will now spend more time listening, adjusting, balancing and tuning.”

Gabrielson stated that although the ability to purchase crystals, which players use to buy loot boxes, has been disabled, it will become available “at a later date…after we’ve made changes to the game.”

Just how EA alters the loot boxes will likely depend on whether the BCG continues to pursue a ban on in-game purchases.

We think video games should leave the gambling aspect to the bookmakers, such as Arcanebet, where punters of age can bet on the outcome of esports tournaments. You can check out our Arcanebet review here to learn more.

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The American regulatory organisation, Entertainment Software Rating Board (ESRB), recently declared that loot boxes are not a form of gambling despite their random nature, and the UK government has taken the same stance while stating it would be monitoring the market.

However, it appears the Belgian Gaming Commission (BCG) wants to make its own mind up and is investigating whether Star Wars Battlefront 2 should be categorised as a gambling game.

Battlefront 2 will be released on Friday in Belgium and as VTM News states, the video game allows you earn or buy loot boxes that are filled with several random items. The issue perplexing regulators all around the world is that you don’t know what’s in the virtual crates.

Director of the BCG, Peter Naessens, believes it counts as gambling since you want a specific outcome and you are taking a risk to get it.

“It is therefore dependent on chance how well you can play the game,” he said.

He added that if it is found to be a game of chance, the game developer needs a gambling license, which would then prevent it from being a video game which you can already bet on.

The BCG believes the game presents several concerns for minors, and the investigation could lead to the regulator classing the video game as a gambling game. If it is, the game’s developer Electronic Arts and its owner, Disney, may end up having to pay a hefty fine or remove the game from shelves.

However, PCGamesN believes that the repercussions will run deeper if BCG declares Battlefront 2 as a gambling games, since regulators in other countries, like the UK, might follow suit.

BCG isn’t the only one concerned about the nature of the game, with many social media users blasting EA about the digital rewards system since the game’s debut on Tuesday.

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