Researchers Want Lawmakers to Treat Loot Boxes as Gambling and Regulate them as Such

Casino Watch Focus has reported on the ongoing issues with gambling-esque look boxes in video games. This mechanic is essentially a slot machine and encourages children to poor more and more money into the game as they chase the warranted prize from a mystery box. This troubling gambling type mechanic has drawn the ire of legislators and regulatory bodies from around the world. Most recently,  the UK started examining loot boxes and micro transactions and had choice words and spirited exchanges with EA, one of the most aggressive loot box pushing publishers and one of the faces of this controversy. These loot boxes really took hold when EA pushed the mechanic in the Disney owned Star Wars franchise video game they licensed known as Battlefield 2 prompting some to call the Star Wars game nothing more than a themed online casino that preys on children.

Since that time, academics and researchers have been examining the links in problem gambling and loot boxes and have broken down how psychologically manipulative these systems are, even when they fall short of some jurisdictions technical definition of gambling. Most recently, researches discussed how this can be a life of death situation among problem gamblers. Now, a formal recommendation is being made that loot boxes be treated as gambling and regulated as such. The Guardian explains:

Video game loot boxes should be regulated as gambling and children barred from purchasing them, a House of Commons committee has advised. The recommendation comes as part of the digital, culture, media and sport (DCMS) committee’s report on immersive and addictive technologies, published on Thursday after months of parliamentary hearings with technology and gaming companies.

While loot boxes involve an element of chance because players do not know what they will get, they are not covered by existing gambling legislation because the items “won” are not considered to have monetary value. But the report heard evidence that loot box winnings can be exchanged for money and that their use by game developers was likely to “facilitate profiting from problem gamblers”.

Researches point to extremely high cost to children that gaming companies are inflicting when they exploit children in this manner. Those cost are financial and otherwise and should prompt legislators to regulate them and ban children from being able to make such gambling type purchase. The Guardian continues:  


Damian Collins, the chair of the committee, said: “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.”

A survey by the Gambling Commission in 2018 found that 31% of children aged 11-16 had paid for loot boxes, while one gamer told MPs that he was spending up to £1,000 a year on the football game Fifa hoping to win better players for his team.

The report cited evidence from cognitive psychologists that such in-game features are “designed to exploit potent psychological mechanisms associated with […] gambling-like behaviours”.

The committee also argued that online games should be legally covered by the same enforceable age restrictions as physical sales, closing a loophole that publishers argued freed them of responsibility.

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION

 

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