The European Union should handle video game loot boxes with consumer protection legislation rather than gambling.

That's the conclusion of a report conducted for the EU Internal Market and Consumer Protection (IMCP) committee titled Loot boxes in online games and their effect on consumers, in particular young consumers, which says that that the business model represents a specific problem with games design.

Is it gambling?

The IMCP's research also says that different countries banning loot boxes under gambling legislation as Belgium has done represents a threat to the EU's single market, given that the same opportunities aren't available to all citizens across all nations in the union. Furthermore, the IMCP says that parental controls in games aren't an effective deterrent because they are often not on by default and guardians often don't know how to use them properly.

"It is therefore recommended to broaden the perspective beyond gambling aspects and approach the issue of loot boxes and other problematic game designs from a wider consumer protection angle," the report concludes.

The UK's House of Lords has recently said that loot boxes should be regulated as gambling.

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Report: EU should treat loot boxes as a consumer protection matter rather than gambling - Pocket Gamer.Biz