A study bythe University of York led by David Zendle indicates that loot boxes bear moreresemblance to gambling than not and contain a clear risk-reward factor.
Loot Boxes Continue to Proliferate in Video Games
Loot boxes are on the rise, a newstudy conducted by the University of York led by David Zendlehas revealed. Even though not technically a form of gambling, the study authorbelieves that loot boxes expose children to gambling.
The number of children participating in gambling activities has risen across the United Kingdom with 1 in 10 children aged 13-18 involved. Meanwhile, the presence of loot boxes in video games has increased from just 4% when they were first introduced to 71% in the course of nearly ten years.
According to the study, all 463most played games on Steam, a digital marketplace for buying andplaying games, have followed suite and introduced loot boxes between 2010and 2019. The purchase of in-game items – known as microtransactions –has also increased to around 86% today from 8% previously.
A Risk-Reward Factor in Loot Boxes
The UK Gambling Commission(UKGC) has not yet categorized loot boxes as gambling, although the studysuggests it should. However, the regulator did specify that estimated 2% of 11-16year-olds can be classified as problem gamblers, based on a report published inOctober, 2019. Commenting on the issue, Zendle had this to say:
“Acommon line amongst industry representatives is that loot boxes are a nichefeature in modern video games. I bet646 n contrast to this, these results suggest thatloot boxes have become a common presence in the lives of many gamers. In 2010,loot boxes appear to have been almost unheard of in desktop games. However,this is no longer the case.”
Specifically, Zendle explainedthat the majority of games on Steam already feature loot boxes. ‘Originally,’ lootboxes were popularized by a handful of video games, and perhaps Valve’s Counter-Strikeand Dota 2 were among the two titles to push loot boxes, although the companydid not peg achievement on microtransactions.
Loot Boxes in Numbers, Briefly
One of the companies to have been in hot water over loot boxes was Electronic Arts (EA). Star Wars Battlefront 2 featured loot boxes which offered players very little actual return, prompting EA chief executive Patrick Söderlund to issue an apology. Regardless, the concept of loot boxes goes back to Japan and has been linked to problem gambling.
Psychologists have agreed that theuncertainty in loot boxes operates as a form of gambling whereby a player feelssatisfaction regardless of the outcome. According to a Juniper Researchsurvey, estimated £23 billion were spent on loot boxes in 2018, and this numberis going to nearly double by 2020.
‘Grooming Kids to Be Addicts’
Some have been more vociferous intheir protest against loot boxes, including Carolyn Harris, chair of the all-partyparliamentary group on gambling-related harm in parliament. As she put it,companies were:
“They’re grooming children to normalise gambling activity by encouraging speculative transactions where you don’t know what you’re going to get.”
Callsto restrict loot boxes have also been growing in the United States where MissouriRepublican Josh Hawley coined “The Protecting Children From Abusive GamblingAct.”
What Happens if Loot Boxes Are Banned in the UK?
TheChildren’s Commissioner for England Anne Longfield is already trying to classifyloot boxes as a form of gambling and tie microtransactions to a regulatoryframework.
TheCommissioner published a special report, Gamingthe System in which children explained how they perceived loot boxes andmicrotransactions. As a Fortnite player put it: “You don’t want to be theone left with no skins.”
InEurope in general, loot boxes have been considered harmful and Belgium and theNetherlands have banned them. Meanwhile, there have been no serious attempt todefine loot boxes as a gambling.
Shouldsuch a development come to pass, however, it would probably concern how lootboxes are used in games but not so much as ban them. However, if loot boxes arefound to be a form of gambling, this would mean that any video game maker wouldalso need to obtain a license to operate.
