Researchers from the University of Plymouth and the University of Wolverhampton analyzed existing studies on loot boxes, uncovering significant findings about their relationship with problem gambling. Their analysis incorporated six surveys, encompassing 7,771 loot box purchasers, revealing that approximately 5% of these players accounted for nearly half of the total loot box revenue by spending over £70 a month. This high-spending group displayed heightened signs of gambling risk, with about one-third scoring eight or above on the Problem Gambling Severity Index (PGSI), which categorizes them as problem gamblers. Additionally, those spending more than $400 monthly had an average PGSI score exceeding 10.
Dr. James Close, a senior research fellow at the University of Plymouth, stated, "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’." He also noted that at-risk groups, including problem gamblers, gamers, and young individuals, disproportionately contributed to loot box revenues.
The research revealed no correlation between spending levels and disposable income. Through a review of these studies, the researchers estimated the UK’s loot box market to be approximately £700 million. Their findings indicated that loot box purchasers are predominantly young males, especially those aged 18-24. Vulnerable demographics, such as individuals with lower educational backgrounds, ethnic minorities, and the unemployed, were also overrepresented among purchasers.
The report concluded with several recommendations aimed at refining loot box policies. It argued that any new regulations should clearly define terms to encompass all game-related transactions involving chance. Transparency features were advised, including disclosures of odds and pricing in real currency rather than in-game currency. The report stated, "Pricing items in ‘gold coins’ (with confusing and inconsistent exchange rates) is not acceptable practice in ‘bricks and mortar’ shops, and it shouldn’t be allowed in virtual shops, either."
The need for clear labeling of games containing loot boxes and appropriate age ratings was emphasized. Furthermore, the researchers suggested that enhanced oversight and enforcement provisions were necessary since current regulatory bodies are ill-prepared to manage loot boxes.
GambleAware's chief executive, Zoë Osmond, highlighted the significance of the report's findings as the British government reviews the Gambling Act and loot boxes. She stated, "This research is part of GambleAware’s continued commitment to protect children, adolescents, and young people from gambling harms. The research has revealed that a high number of children who play video games also purchase loot boxes, and we are increasingly concerned that gambling is now part of everyday life for children and young people."
Osmond stressed that it is now up to lawmakers to evaluate this research along with other evidence and decide on necessary legislative changes to address these issues.
