A recent study, funded by GambleAware, has revealed that individuals who allocate more than £70 ($97/€82) monthly on loot boxes are at an elevated risk of developing a severe gambling dependence.
Scholars from Plymouth University and the University of Wolverhampton did not directly investigate the relationship between loot boxes and harm. Instead, they conducted a secondary examination of various prior reports on loot boxes.
This analysis encompassed six surveys involving 7,771 loot box purchasers. The study discovered that approximately 5% of participants contributed to roughly half of the total loot box income, spending over £70 per month.
These high-spending participants were also observed to demonstrate signs of a more serious gambling addiction risk. Approximately one-third of this group scored 8 or higher on the Problem Gambling Severity Index (PGSI), which categorizes players as problem gamblers.
Moreover, those spending over $400 per month achieved an average score of over 10 on the Problem Gambling Severity Index (PGSI).
An investigation conducted by Dr. James Close, a leading scholar at Plymouth University, has revealed a link between loot boxes and problematic gambling. The research discovered that players are enticed into purchasing loot boxes through the use of psychological tactics such as “fear of missing out.” “We also demonstrated that individuals who are susceptible, such as those with gambling issues, gamers, and young individuals, spend significantly more on loot boxes.”
The study also found that the amount individuals spend is not contingent upon their financial resources.
Based on this and other studies, researchers have determined that the UK loot box market is estimated to be worth approximately £700 million.
Researchers surveyed individuals who purchase loot boxes and discovered that they are typically young men, particularly those between the ages of 18 and 24. They also observed that individuals with lower levels of education, individuals from diverse backgrounds, and individuals who are unemployed are more likely to buy loot boxes.
The report proposes several recommendations for improving the regulations surrounding loot boxes.
The report emphasizes that despite potential disagreements regarding specific details, any new legislation or regulations pertaining to loot boxes should clearly define their nature, encompassing “all game-related transactions where the outcome is uncertain.”
The document also indicates that the new loot box policy should necessitate diverse transparency elements, such as revealing probabilities and demanding that prices be displayed in actual currency instead of in-game currency.
“It is inappropriate to set prices in ‘coins’ (at a confusing and inconsistent exchange rate) in physical shops, and it should not be permitted in virtual stores,” the document states.
Additionally, researchers believe that games should clearly label the inclusion of this characteristic, with a suitable age rating.
Lastly, the document states that new oversight and enforcement measures are required, as current gambling regulators are not appropriate for regulating loot boxes.
GambleAware CEO Zoë Osmond stated that the document unveils significant findings prior to the UK government’s examination of the Gambling Act and its simultaneous review of loot boxes.
“This investigation is part of GambleAware’s ongoing dedication to safeguarding children, young adults and grown-ups from gambling harm,” she said. “The investigation demonstrates that a substantial number of children who play video games also purchase loot boxes, and we are increasingly worried that gambling is now a part of daily life for children and young adults.
“GambleAware financed this investigation to highlight concerns regarding loot boxes and problematic gambling in anticipation of the upcoming Gambling Act review.”
Its now time for political leaders to examine this research, alongside the findings of other organizations, and determine which regulations require modification to address these issues.
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