New Danish Research: Microtransactions Put Children at Risk

New research has been released by the Danish Center for Social Science Research (also known as VIVE) after an agreement with the Danish Gambling Authority was made in 2018.

The project was designed to study the effects of gambling-related elements in video games and how it could put children and young people at risk.

VIVE interviewed 107 children and young people from the general public for their research. The children aged between 10 and 19, while the 5 young adults that were interviewed ranged in age from 20 to 25. The young adults in the group have experienced serious issues with video gaming and/or gambling in the past.

While the research does not find direct correlations between developing gambling addiction and the use of microtransactions in video games, there are still risks that must be considered.

 4 Important Factors to Consider

Microtransactions, skin betting and loot boxes are all well-known forms of purchasing that can be done in video games. They’ve become a norm and purchasing a loot box filled with random items and skins for real money is not unusual.

Often, these purchases are being made by children (using mom and dads credit cards) which is what makes the practice so dangerous. While adults may have the cognisance to stop spending when they’ve reached a limit, children don’t have the same skills.

Here are four important factors that the Danish research has uncovered with regards to this type of spending by children when playing video games.

✓ 1. The Connection Between Gambling and Microtransactions

More and more video games are adding the option of making purchases while playing. From mobile games to random loot boxes on games such as FIFA, microtransactions are a normal part of playing online. Many children in the survey found that spending money in-game is thrilling and can feel a lot like gambling. However, only a small number of those questioned shared that they find microtransactions problematic.

✓ 2. Video Games Are Social but Can Cause Harm

Playing video games has become a normal part of life and can often be a connection to those around us. Children and young adults from the survey shared that gaming daily is an important part of their individual well-being and social communities. It also forms an important part of the learning and education experience for some children.

Unfortunately, many children shared in the survey that the number of hours spent gaming, the energy used to do so and the money they need to play can bump family and education to a lower priority.

✓ 3. Spending Money on Microtransactions Is Too Easy

Microtransactions are considered a gambling-related element that children have connected to spending playing video games. One of the main issues noted by the research of the survey is that these microtransactions often take the focus away from spending and focus on what you’ll potentially gain instead.

For children who have not yet developed a sense of critical thinking, this is dangerous and the money being spent is not necessarily seen as “real”. Among older children and young adults, spending more can be seen as a social mark as peer pressure can be involved.

✓ 4. Parents Need to Be More Involved

While the gaming industry continues to focus on microtransactions and loot boxes, the survey revealed just how important it is for parents to be involved. Help children learn that microtransactions are not a vital part of playing online and be involved enough to know when a limit is being pushed and a line is being crossed.

Parents should emphasise that money being spent on microtransactions is still real money and that there must be limitations in place to protect at-risk children.