A recent report from the New South Wales (NSW) Office of Responsible Gambling warns that the rise of loot boxes and similar gambling-like features could lead to increased gambling among young people, potentially resulting in higher instances of gambling-related harm. The study, conducted by researchers from Central Queensland University, examines how gambling habits are evolving from childhood through young adulthood.
The research involved a survey of 2,004 participants aged 18 to 29 in NSW, focusing on their gambling and gaming behaviors through an online questionnaire. Key findings revealed that individuals aged 25 to 29 were more engaged in traditional gambling activities, with 64.8% playing the lottery in the previous year, followed by scratchcards at 62.2% and poker machines at 52.9%.
In contrast, those aged 18 to 24 showed a greater inclination towards emerging gambling forms, such as loot boxes and skin gambling, where virtual items are wagered. About 50% of respondents in this younger group reported having opened loot boxes in the past year, and 44.9% played games incorporating gambling mechanics. Additionally, 62.7% of individuals aged 18-24 had engaged with video games featuring gambling content before reaching adulthood, which was the highest among all age groups.
The study noted that exposure to gambling at home significantly shaped participants' experiences, with 11.1% of the older cohort recalling frequent gambling by adults in their households, compared to 7.0% in the younger group.
Significantly, those starting to gamble at age 18 were noted to be “significantly more likely” to have experienced gambling-related harm in the last year. The relationships between new forms of gambling and harm remained significant even when accounting for age and impulsivity. The researchers suggested that the rise of newer gambling forms might lead young adults away from traditional options, indicating a shift in preferences.
The report stated, “Compared to the older cohort, the younger cohort was less engaged in traditional gambling forms.” It also acknowledged that reduced exposure to gambling in their household could explain the younger generation’s decreased participation in traditional gambling activities. However, it warned that the increase in exposure to newer forms could result in early gambling experiences that might later encourage real-money gambling and associated harms in adulthood.
To address these findings, the researchers called for additional study to see if the lower incidence of harm among younger individuals is sustained over time. They highlighted that younger individuals engaging in emerging gambling forms while underage did not show a greater likelihood of experiencing gambling harm, potentially due to the lower costs associated with these activities compared to traditional forms. Yet, the trend of substituting traditional gambling with newer forms prompted the need for regulation to mitigate harm.
The report concluded that while the lower uptake of traditional gambling may reduce gambling harm among youth, the rise in emerging gambling forms could sustain or even heighten risks in the future. The researchers asserted: “Our conclusions are that these emerging forms are not benign and warrant additional attention because they appeal to younger people, who are vulnerable to harm.” They emphasized the importance of ongoing research to keep pace with the rapid changes in gambling technology and the differing regulatory needs for each form.
In related initiatives, the NSW Office of Responsible Gambling has allocated AUD 236,000 to four new projects aimed at combating gambling harm among youth. The funds will support various programs in southwest Sydney, with Cumberland City Council receiving AUD 60,000 for an awareness campaign, Fairfield City Council obtaining AUD 60,000 for educational videos, Headspace Campbelltown receiving AUD 60,000 for youth-oriented educational resources, and Woodville Alliance getting AUD 56,000 for a project targeting Vietnamese youth in Fairfield. Natalie Wright, director of the NSW Office of Responsible Gambling, emphasized the need for early intervention in addressing gambling harm among young adults aged 18 to 24.
