US Senator Asks ESRB to Regulate Loot Boxes before the Government Has To

Hawaii isn’t acting alone in tackling the epidemic of loot boxes: US senator Maggie Hassan has just sent an open letter to ESRB president Patricia Vance urging the industry to self-regulate before the government has to step in.
 

The prevalence of in-game micro-transactions, often referred to as ‘loot boxes,’ raises several concerns surrounding the use of psychological principles and enticing mechanics that closely mirror those often found in casinos and games of chance. The potential for harm is real. Recently the World Health Organization classified “gaming disorder” as a unique condition in its recent draft revision of the 11th International Classification of diseases. While there is robust debate over whether loot boxes should be considered gambling, the fact that they are both expensive habits and use similar psychological principles suggest loot boxes should be treated with extra scrutiny. At minimum, the rating system should denote when loot boxes are utilized in physical copies of electronic games.

To that end, I respectfully urge the ESRB to review the completeness of the board’s ratings process and policies as they relate to loot boxes, and to take into account the potential harm these types of micro-transactions may have on children.

A few things are going on here. Referenced in the first part of the letter is the WHO’s recent classification of a new disease called “gaming disorder”, which basically acknowledged video game addiction as a legitimate disease. While it’s moderately relevant to the subject of loot boxes, since addiction is often exploited in loot box design, Gaming Disorder is not only broader than that limited case, but it is also under scrutiny. Last I checked, the classification hasn’t been made official, largely because many doctors are arguing that an addiction to gaming is a symptom of a larger disorder, not a disorder within itself.

The second thing worth mentioning is that the ESRB, as you might recall, has already voiced an opinion on Loot Boxes: specifically, the ESRB stating the feature as not gambling. It’s unsurprising they would make that call, considering they’re run by the industry itself. So asking them to review their stance might not exactly have been meant as a threat… but it certainly could be seen as one, especially considering part two of this story.



The very same senator was present when questioning potential FTC nominees, and again brought up the subject of loot boxes. Specifically, she asked the following:

"Do you agree that children are being addicted to gaming and activities like loot boxes that might make them more susceptible to addiction is a problem that merits our attention? And depending on how the ESRB responds to my inquiry, would the FTC be willing to look at loot boxes as an issue independently?"

A bit chilling, isn't it?

Despite constant efforts by the government in the United States to play a role in the distribution of games, particularly back when it was unsure if the industry was protected under the first amendment, the gaming industry has been able to remain largely self-regulating. If legislation of this type keeps moving forward, that could change dramatically.

And a power we give up to the government is very, very hard to get back.