A recent BBC investigation has revealed that a significant number of the top 45 highest-grossing games on Google Play fail to disclose the presence of loot boxes in their advertisements, which is a violation of UK Advertising Standards Authority (ASA) regulations.

Among the 45 games examined, 26 were found to include loot boxes, yet only two provided clear information about these features in their ads, raising concerns about transparency.

For instance, a recent advertisement for Monopoly GO! featuring celebrities like Chris Pratt and Jason Momoa included a disclaimer about 'in-app purchases' but did not specify that these purchases could include loot boxes.

This lack of clarity has sparked scrutiny regarding the ethical responsibilities of the gaming industry to protect players, particularly children, from potentially harmful gambling-like practices.

Zoë Osmond, CEO of GambleAware, has voiced concerns about the normalization of gambling-like activities in games, warning that early exposure could increase the risk of future gambling harm among children.

Dr. Jane Rigbye, CEO of the Young Gamers and Gamblers Education Trust, emphasized the need for transparency in gaming features to help parents make informed decisions about their children's gaming.

Despite the trade body Ukie's guidance issued in July 2023 requiring disclosures about loot boxes prior to purchase, many games still do not comply, often hiding this information behind small buttons.

The UK government has opted for self-regulation within the gaming industry, which has led to inadequate disclosures about loot boxes, despite calls for stricter regulations.

Critics argue that loot boxes resemble gambling and can negatively affect children's development, as they are a significant audience for these games.

With 58% of Android games and 59% of iPhone games containing loot boxes, many of which are rated for children aged twelve and under, there are growing concerns about exposing minors to gambling-like experiences.

The ASA has acknowledged the compliance issues within the gaming sector and is actively monitoring the situation, although it faces criticism for its slow enforcement process.

As the controversy surrounding loot boxes continues, the ongoing scrutiny of advertising practices in the gaming industry may lead to significant changes in how developers market their games and disclose information to consumers.