Regulating Lootboxes in Video Games

Question:

Mr Melvin Yong Yik Chye: To ask the Minister for Home Affairs in view of the potential risks of predatory monetisation strategies in video games that induce vulnerable individuals to gamble, whether the Ministry has plans to review its position on regulating lootboxes in such games.

Answer:

Mr K Shanmugam, Minister for Home Affairs and Minister for Law:

1. There is already risk-calibrated regulation of loot boxes in online games. Under the current class licensing regime, operators are permitted to introduce loot boxes in online games if they implement safeguards to mitigate gambling inducement risks.

2. For online games where players may pay for a chance to play, prizes from loot boxes must be designed primarily for use within the game. Operators are prohibited from offering money as prizes, or from redeeming the prizes in exchange for money.

3. Games that are free of charge pose lower gambling inducement risks. They are therefore subject to less stringent requirements. There are no restrictions on the types of prizes that operators may offer. However, the game must not involve any prohibited game – for example, mahjong and poker – or display any article associated with prohibited games. A player’s chance to play such games, such as game tokens that players can accumulate, also cannot be transferable to other players.

4. The Ministry of Home Affairs will continue to monitor the gambling landscape, and review the regulations as necessary.