A House of Commons committee has advised that loot boxes in video games should be regulated as a form of gambling, and that children should be banned from purchasing them.

A digital, culture, media and sport (DCMS) committee report recommended that loot boxes do not need to be regulated if they are earned by progressing through the game, but if there is a transaction involving real money then the video game must indicate that it contains gambling and be age-rated accordingly.

Loot boxes in video games are akin to slot machines, offering players a random chance to obtain high-value items. Buying more boxes gives players the opportunity to get better items, but the odds of such lucky feats occuring have often been kept secret.

The report, published on Thursday, also heard evidence that the mechanics used by loot boxes could see companies “profiting from problem gamblers”.

Chair of the committee Damian Collins said that loot boxes are “particularly lucrative for games companies but come at a high cost, particularly for problem gamblers, while exposing children to potential harm. Buying a loot box is playing a game of chance and it is high time the gambling laws caught up. We challenge the government to explain why loot boxes should be exempt from the Gambling Act.”