Why loot boxes could be regulated as gambling

Drummond, Aaron; Sauer, James D.; Hall, Lauren C.; Zendle, David; Loudon, Malcolm R

doi:10.1038/s41562-020-0900-3

Cited by 89 publications

(89 citation statements)

References 8 publications

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“…Some video games contain randomised purchasable rewards (loot boxes) that some scholars have observed may psychologically approximate conventional gambling activities ( Drummond & Sauer, 2018 ; Griffiths, 2018 ). Some scholars have also observed that these mechanisms might meet the legal criteria in many jurisdictions, and could potentially be considered a form of bona fide gambling ( Drummond et al, 2020a ; McCaffrey, 2019 ). This may explain why studies have repeatedly found a small significant association between problem gambling symptomology and spending on loot boxes ( Brooks & Clark, 2019 ; Drummond, Sauer & Hall, 2019 ; Drummond et al, 2020a ; Drummond et al, 2020b ; Li, Mills & Nower, 2019 ; Macey & Hamari, 2019 ; Zendle & Cairns, 2018 ; Zendle & Cairns, 2019 ; Zendle et al, 2020 ), a result confirmed by meta-analysis ( Garea et al, 2020 ).…”

Section: Introductionmentioning

confidence: 99%

“…Some video games contain randomised purchasable rewards (loot boxes) that some scholars have observed may psychologically approximate conventional gambling activities (Drummond & Sauer, 2018;Griffiths, 2018). Some scholars have also observed that these mechanisms might meet the legal criteria in many jurisdictions, and could potentially be considered a form of bona fide gambling (Drummond et al, 2020a;McCaffrey, 2019). This may explain why studies have repeatedly found a small significant association between problem gambling symptomology and spending 1 We intended to also assess the effect of being in citywide lockdowns, but the low number of participants reporting not being in lockdown (n = 69) rendered this analysis underpowered, likely invalidating the results.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Effects of self-isolation and quarantine on loot box spending and excessive gaming—results of a natural experiment

Hall

Drummond

Sauer

et al. 2021

PeerJ

Self Cite

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COVID-19 has prompted widespread self-isolation and citywide/countrywide lockdowns. The World Health Organisation (WHO) has encouraged increased digital social activities such as video game play to counteract social isolation during the pandemic. However, there is active debate about the potential for video game overuse, and some video games contain randomised purchases (loot boxes) that may psychologically approximate gambling. In this pre-registered study, we examined the effects of self-isolation and quarantine on excessive gaming and loot box spending. We recruited 1,144 (619 male, 499 female, 26 other) Australian, Aotearoa New Zealand, and US residents who self reported being quarantined or self-isolating (n = 447) or not (n = 619) during the COVID-19 pandemic to a cross-sectional natural experiment. We compared the associations between problem gambling symptomology, excessive gaming and loot box spending for isolated and non-isolated participants. Participants completed the Kessler-10 Psychological Distress Scale, Problem Gambling Severity Index, Internet Gaming Disorder Checklist, a measure of risky engagement with loot boxes, concern about contamination, and reported money spent on loot boxes in the past month, as well as whether they were quarantined or under self-isolation during the pandemic. Although, in our data, excessive gaming and loot box spending were not higher for isolated (self-isolated/ quarantined) compared to non-isolated gamers, the established association between problem gambling symptomology and loot box spending was stronger among isolated gamers than those not isolated. Concerns about being contaminated by germs was also significantly associated with greater excessive gaming and, to a lesser extent, loot box spending irrespective of isolation status. Gamers might be managing concerns about the pandemic with greater video game use, and more problem gamblers may be purchasing loot boxes during the pandemic. It is unclear whether these relationships may represent temporary coping mechanisms which abate when COVID-19 ends. Re-examination as the pandemic subsides may be required. More generally, the results suggest that social isolation during the pandemic may inflate the effect size of some media psychology and gaming effects. We urge caution not to generalise psychological findings from research conducted during the COVID-19 pandemic to be necessarily representative of the magnitude of relationships when not in a pandemic.

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Section: Introductionmentioning

confidence: 99%

“…Some video games contain randomised purchasable rewards (loot boxes) that some scholars have observed may psychologically approximate conventional gambling activities (Drummond & Sauer, 2018;Griffiths, 2018). Some scholars have also observed that these mechanisms might meet the legal criteria in many jurisdictions, and could potentially be considered a form of bona fide gambling (Drummond et al, 2020a;McCaffrey, 2019). This may explain why studies have repeatedly found a small significant association between problem gambling symptomology and spending 1 We intended to also assess the effect of being in citywide lockdowns, but the low number of participants reporting not being in lockdown (n = 69) rendered this analysis underpowered, likely invalidating the results.…”

Section: Introductionmentioning

confidence: 99%

Effects of self-isolation and quarantine on loot box spending and excessive gaming—results of a natural experiment

Hall

Drummond

Sauer

et al. 2021

PeerJ

Self Cite

View full text Add to dashboard Cite

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“…in Hearthstone, the game will pay a player 100 Arcane Dust (an in-game currency) in exchange for the player giving up a regular 'epic' reward and 400 Arcane Dust for a regular 'legendary' reward). Regardless of how the superior rarities and higher perceived value are represented, the commercial success of games implementing Embedded-Isolated RRMs, such as Hearthstone, demonstrates that players 'value' and are willing to pay for such rewards even though they do not possess monetary value (see Drummond et al 2020).…”

Section: Embedded-isolated Rrms: Gambling For Perceived Value and Formentioning

confidence: 99%

Which Implementations of Loot Boxes Constitute Gambling? A UK Legal Perspective on the Potential Harms of Random Reward Mechanisms

Xiao

2020

Int J Ment Health Addiction

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Loot boxes are virtual items in video games that offer the player randomised in-game rewards of uncertain in-game and real-world value. Paid loot boxes represent a lucrative and prevalent contemporary monetisation method that encourages repeat purchase through randomisation. The psychology literature has consistently reported a relationship between loot boxes and problem gambling. However, various implementations of loot boxes have not been sufficiently differentiated and separately examined. The literature and gambling regulators have generally argued that only loot boxes that cost real-world money to buy, and offer rewards that can be transferred to other players and are consequently worth real-world money, constitute 'gambling.' This paper identifies the potential harms of two other types of loot box: one does not cost real-world money to buy and the other does not offer rewards that are worth real-world money and argues that both may constitute 'gambling' under UK law. This paper hypothesises that even loot boxes that neither cost real-world money to buy nor offer rewards that are worth real-world money may be potentially harmful as they may normalise gambling behaviours. This paper highlights that, when the game's design and economy are exploited by players, a particular implementation of loot boxes may involve real-world money, potentially contrary to the game company's intentions, and thereby effectively constitute 'gambling.' This paper recommends that future empirical research separately examine the potential harms of each type of loot box.

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“…'Loot boxes' are virtual video game items yielding randomised rewards of in-game and potential real-world value (Drummond et al, 2020;Nielsen and Grabarczyk, 2019;Rockloff et al, 2020;Xiao, 2020c). Some loot boxes can be 'opened' for free, e.g., after completing in-game tasks (Nielsen and Grabarczyk, 2019;Rockloff et al, 2020;Xiao, 2020d).…”

Section: Loot Boxes Disordered Gambling and Regulationmentioning

confidence: 99%

“…Total spending on loot boxes and 'skins gambling' (gambling using in-game items, including those obtained through RMMs) has been predicted to rise from US$30 billion in 2018 to US$50 billion in 2022 (Juniper Research, 2018). The virtual items (including those obtained through loot boxes) of three popular Steam games 1 have been transacted 1.45 billion times between players, with an aggregated value of over US$1 billion (Drummond et al, 2020).…”

Section: Loot Boxes Disordered Gambling and Regulationmentioning

confidence: 99%

Gaming the system: sub-optimal compliance with loot box probability disclosure regulations in China

Xiao¹,

Ll²,

Yang³

et al. 2020

Preprint

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Paid loot boxes yield randomised rewards in video games; their use is linked to disordered gambling and they are present in approximately half of UK video games. The People’s Republic of China (PRC) is unique in legally requiring video game companies to disclose the probabilities of obtaining loot box rewards. This study assesses the prevalence of loot boxes in the 100 highest-grossing PRC iPhone games and companies’ discretionary interpretations of these disclosure regulations. Overall, 91% of games included at least one loot box, and 90.5% of games deemed suitable for children aged 12+ contained loot boxes. For games with loot boxes, disclosure statements could not be found for 4.4% of games; website-only disclosures were found for 38.5% of games; in-game-only disclosures were found for 23.1% of games; disclosures were found at both locations for 34.1% of games. Six distinct forms of in-game disclosures were identified, as were five forms of website disclosures. Overall, 13.6% of website disclosures could be considered reasonably prominent, and 9.6% of in- game disclosures were shown automatically. Loot boxes are prevalent in the most-popular PRC video games, but only a minority of games disclose the probabilities of obtaining randomised rewards reasonably prominently.

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Why loot boxes could be regulated as gambling

Cited by 89 publications

References 8 publications

Effects of self-isolation and quarantine on loot box spending and excessive gaming—results of a natural experiment

Effects of self-isolation and quarantine on loot box spending and excessive gaming—results of a natural experiment

Which Implementations of Loot Boxes Constitute Gambling? A UK Legal Perspective on the Potential Harms of Random Reward Mechanisms

Gaming the system: sub-optimal compliance with loot box probability disclosure regulations in China

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