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GambleAware Study Proves Links Between Loot boxes and Gambling Addiction
By Shane Addinall Apr 08, 2021 IndustryGambleAware funded an investigation by highly regarded universities into the similarities between gambling triggers in adults and loot box triggers in children – the results are undeniable and concerning.The United Kingdom has been slow to commit to a definition of loot boxes in video games that calls them gambling.
This is not unexpected from a territory with a robust gambling policy as any misstep runs the risk of either nullifying existing gambling legislation or creating technical loopholes for Game developers like Electronic Arts (EA) to manipulate to their advantage.
The UKGC has however gone on record stating that they are concerned about the similarities between the experience of gambling and that of opening loot boxes in the hopes of winning a desirable item.
So much so in fact that whether loot boxes are categorised as gambling, and therefore illegal to offer to players under 18 years old, is on the docket for the upcoming Gambling Act Review.
GambleAware Pushes Ahead
GambleAware however is focused on protecting young and at-risk Britons from abuse, be it in a casino or in a video game. To this end, they funded an in-depth report on the loot box phenomenon and the following statement is telling of their findings:
“The report consolidates evidence for the structural and psychological similarities between gambling and gaming…”
The statement goes on to confirm that no less than twelve studies have “robustly verified” that there is a provable link between players purchasing in-game loot boxes and the development of problem gambling.
The most concerning statistic to come out of the reports by the University of Plymouth and the University of Wolverhampton is that 93% of children (under 18’s) in the UK play video games with 40% of these stating that they purchase and open loot boxes.
Dr James Close, University of Plymouth Research Fellow, said:
“Our work has established that engagement with loot boxes is associated with problem gambling behaviours, with players encouraged to purchase through psychological techniques such as ‘fear of missing out’. We have also demonstrated that at-risk individuals, such as problem gamblers, gamers, and young people, make disproportionate contributions to loot box revenues.”
With these proven “structural and psychological” parallels between opening loot boxes and gambling, this means that 38 out of every 100 children in the UK has been intentionally groomed by major corporations to become addicted to gambling.
Given that EA has reported annual revenues of more than $1 billion from loot boxes alone, means they have no incentive to stop promoting gambling-based products to children. The only deterrent that will put an end to this abuse is direct intervention from local gambling authorities.
Empowering Politicians To Take Action
One of the main reasons for GambleAware to fund these reports is to empower the UK government to take the necessary action during the Gambling Act Review.
Zoë Osmond, CEO of GambleAware, said:
“GambleAware funded this research to highlight concerns around loot boxes and problem gambling, ahead of the upcoming Gambling Act Review. It is now for politicians to review this research, as well as the evidence of other organisations, and decide what legislative and regulatory changes are needed to address these concerns.”
They have also made the following suggestions as to how local regulations can being to police these invasive and dangerous microtransactions:
- Clear definitions of loot boxes.
- Game labelling and enforceable age ratings.
- Full disclosure of odds presented in an easily understood manner.
- Spending limits and prices shown in real currency.
They are not blind to the challenging road ahead, stating that the only way forward is for these definitions and policies to be enforced through the inclusion of new regulations and updating existing gambling regulations.
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