New study reinforces link between loot boxes and gambling addiction.

Highlight I 09.04.21

By: Magno José

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The study, commissioned by the organization GambleAware, explores the origins and various aspects related to loot box systems implemented by the gaming industry in recent years.

 

New research conducted by the Universities of Plymouth and Wolverhampton in the UK indicates a significant link between loot box mechanics and gambling addiction, analyzing methodologies from previous studies and conducting their own research on different types of loot box systems applied in games and their impact on the user in financial and social terms.

The study, commissioned by the organization GambleAware, explores the origins and various aspects related to loot box systems implemented by the gaming industry in recent years, as well as their impact on the public – including children – and attempts at legislation in countries such as Belgium and the Netherlands.

“The purchase of loot boxes is predicated on gambling-related cognitions, such as the 'illusion of control' in which players believe they can influence the outcomes of random events,” the study says. “Cognitions of this type play a role in the development of a gambling problem.”

The text cites both psychological triggers, such as the feeling of excitement and anticipation when opening a box and seeing the items revealed, as well as social factors reinforced by the game itself to engage the player and encourage them to buy more – the so-called "FOMO," short for "Fear of Missing Out."

“This fear of missing out related to loot boxes (distinct from the 'FOMO' generally associated with social media engagement) encompasses a sense of urgency to take advantage of limited-time offers/events, and a fear of missing out on social events focused around opening loot boxes and their contents.”

The study also analyzes the purchasing patterns of "whales," users who spend large sums of money on games and who serve as the main source of income for certain titles, with a particular focus on men aged 18 to 25.

"The trend among loot box consumers – particularly biased towards young men – is especially concerning when framed alongside the finding that 'whales' who spend heavily tend to be addicted gamers, rather than high-net-worth individuals."

There is no explicit data linked to children buying loot boxes, but the study indicates that, at least in the United Kingdom, 93% of children play video games, and between 25% and 40% have already bought a loot box.

The research also indicates that proposed and implemented loot box legislation methods in certain countries do not take into account various factors and different methods of monetizing these items, leading companies to find ways to circumvent the system.

In contrast, the gaming industry itself has also not been effective in self-regulating.

“All of this leads to the question: would a total 'ban on loot boxes' be simpler for everyone involved – developers, players, governments, and taxpayers?” the conclusion states. “This tactic has its advantages. It would likely be popular, applauded by many players whose attitude towards them is predominantly negative. More than that, this direct measure would free up limited government and regulatory resources for more important matters.”

Recently in Brazil, the Public Prosecutor's Office accepted a request to open proceedings against game companies to ban loot boxes. ( The Enemy – Victor Ferreira)

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