The Government has said it's concerned about popular video games crossing the line into offering gambling services.

It comes amid growing criticism of so-called loot boxes, which allow players to either earn or purchase randomised in-game rewards and items.

While a number of loot boxes are typically earned through normal play, many games also offer the option to buy the boxes using real money.

Unlocks range from digital 'cosmetics' - such as costumes or skins - to extra weapons or other powerful in-game items.

A loot box in Overwatch. Image: Blizzard

Popular games such as Overwatch, FIFA, Star Wars Battlefront II and Call of Duty have offered 'microtransactions' in recent years - although some publishers have dropped them among growing criticism from the gaming community.

In some cases - especially with some PC titles - the purchased items can be put up for sale on third-party websites.

Particular concern has emerged about third-party sites that allow players to use the virtual items as currency for betting - a process typically referred to as 'skin gambling' or 'skin betting'.

Senator Jerry Buttimer has described loot boxes as a "huge and growing concern for parents and people prone to gambling addiction".

Government response

Minister of State David Stanton says a recent declaration by more than a dozen gambling authorities, including Ireland, highlights the concerns.

In a statement, the authorities said they are "increasingly concerned with the risks being posed by the blurring of lines between gambling and other forms of digital entertainment" - pledging to work together to "thoroughly analyse the characteristics of video games and social gaming".

Officials in Ireland, Latvia, Czech Republic, Isle of Man, France, Spain, Malta, Jersey, Gibraltar, Portugal, Norway, Netherlands, the UK, Poland, Austria and Washington State signed the declaration, although it does not have any legal effect.

Minister Stanton stressed that parents have 'primary responsibility' to protect their children from the risks of in-game purchases. 

However, he also stressed that in-game purchases are typically covered by normal consumer law rather than gambling legislation.

In a statement today, he said: "Where a game offers the possibility of placing a bet or the taking of risk for financial reward within the game, then, in my view it must be licensed as a gambling product. To offer gambling products in Ireland, a license is required."

He stresses: "It should be understood, that if a game offers in-game purchases - be they loot boxes, skins, etc. - which are promoted to gamers as increasing their chances of success, such purchases are essentially a commercial or e-commerce activity. This activity would fall within normal consumer law.

"If there is dissatisfaction with the purchase or, how it is promoted, then objections should be directed to the appropriate authority. My Department does not have a role to regulate game developers on how their games work nor, in the offering of in-game purchases."

He added that work is underway to modernise gambling law here, with the Government expecting a report from an inter-departmental group expected this autumn.