The University of Plymouth and the University of Wolverhampton conducted a secondary analysis of previous reports on loot boxes to explore their potential relationship with harm. They found that around 5% of surveyed loot box purchasers, totaling 7,771 individuals, generated approximately half of the total loot box revenue by spending more than £70 per month. This group of higher-volume players exhibited higher risks of problem gambling, with about a third scoring eight or above on the Problem Gambling Severity Index (PGSI), indicating problem gambling behavior.
Dr James Close, senior research fellow at the University of Plymouth, states that engagement with loot boxes is associated with problem gambling behaviors. He further highlights the use of psychological techniques like ‘fear of missing out’ to encourage players to make purchases. The study reveals that at-risk individuals such as problem gamblers, gamers, and young people contribute disproportionately to loot box revenues. Additionally, the researchers discovered no correlation between spend levels and disposable income.
Reviewing various studies, the researchers estimate that the loot box market in the UK is valued at approximately £700m. The survey conducted by the researchers found that loot box purchasers are mainly young males, with males aged 18-24 being the most common demographic. Loot box purchasers also included individuals with lower educational attainment, ethnic minorities, and the unemployed, indicating overrepresentation within these groups.
The report presents several recommendations for improving loot box policies. It suggests that precise definitions should be established for loot box laws or regulations to cover all transactions within games that involve chance-based outcomes. Transparency features, such as odds disclosures and pricing in real money terms rather than in-game currency, should also be required. The report emphasizes the importance of clearly labeling games that contain loot box features and assigning appropriate age ratings. Furthermore, the researchers argue that new oversight and enforcement provisions are necessary since existing gambling regulatory bodies may not be equipped to regulate loot boxes effectively.
GambleAware CEO Zoë Osmond emphasizes the significance of the research findings as the British government reviews the Gambling Act and examines loot box issues. GambleAware funded this research in their commitment to protect children, adolescents, and young people from gambling-related harms. The research reveals alarming figures concerning the high number of children who purchase loot boxes while playing video games, which raises concerns about gambling becoming normalized in their daily lives. Osmond urges politicians to review this research and other evidence to determine the legislative and regulatory changes required to address these concerns.
