It’s time for the government to take a look at loot boxes

Its high time for the administration to examine the matter of loot boxes – iGB

Kevin Clealnd, Chief Operating Officer at YGAM, states that there is mounting evidence suggesting that it is sensible to prohibit the sale of in-app game acquisitions containing randomized components to individuals under the age of 18, as they bear a striking resemblance to gambling.

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Its high time for the administration to examine the matter of loot boxes
Kevin Clealnd, Chief Operating Officer at YGAM, states that there is mounting evidence suggesting that it is sensible to prohibit the sale of in-app game acquisitions containing randomized components to individuals under the age of 18, as they bear a striking resemblance to gambling.

We welcome the news that the government will be initiating an evidence-gathering process on loot boxes later this year. Now is the opportune moment for all interested parties to thoroughly examine this matter, and we eagerly anticipate sharing our perspectives.

At YGAM, we concur with the viewpoints expressed by the Digital, Culture, Media and Sport Select Committee and the Children’s Commissioner that loot boxes containing randomized components should not be offered for sale to children under the age of 18.

Whether they should be categorized as gambling remains a subject of ongoing discussion, but there is evidence indicating that they attract individuals with gambling problems and young people. Research conducted by the Children’s Commissioner, the Royal Society for Public Health (RSPH) and Newcastle University all perceive gambling-related activities conducted through games as a form of gambling.

Awareness is on the rise

This is also something we have observed anecdotally in our work.

At YGAM, we create educational plans for young individuals and then educate professionals – educators, youth workers, and other professionals in settings that work with young people – to deliver our plans to the young people they help.

Many of these practitioners discuss loot boxes as a problem, which is something we see in our direct work with young people as well. For instance, through the National Citizen Service program, young people are very open about their spending habits in games and how it makes them feel, discussing the “excitement” they get when they press the button, the pressure they feel from their friends to buy the latest items, and the disappointment and anger they feel when they end up with “worthless” prizes.

Actually, in 2018 we realized that gaming issues were just as significant as traditional gambling issues, which prompted us to change our organization’s name to the “Young Gamers and Gamblers Education Trust” to reflect this change.

Shifting Generations

One reason for the growing worry about gaming risks is that young people have increasing access to games.

In the early part of this year, a Childwise poll showed that a large majority of 11-year-olds possess their own mobile device. Given the growing integration of gambling elements in smartphone games, and the regular appearance of loot boxes in standard games, today’s young people are undoubtedly more exposed to gambling than in the past.

In 2019, YGAM tasked Red Brick Research with conducting an investigation into gaming and gambling among university students, surveying a significant number of undergraduate and postgraduate students. The research discovered that a substantial majority of students reported engaging in gaming, with a considerable portion playing daily and a significant number playing multiple times each day. Nearly half of the students who played daily believed it had a negative impact on their academic progress.

Beyond the issue of loot boxes, there are other concerns regarding gaming, such as whether young individuals are dedicating an excessive amount of time to gaming, to the detriment of other aspects of their lives.

Young people are spending increasingly extended periods gaming, leading to a rise in screen time. However, gaming also provides numerous advantages, as demonstrated during periods of confinement, including maintaining connections with peers and enhancing learning abilities.

At YGAM, we believe it is essential to educate young people about the potential negative consequences and risks before problems arise, so they can make well-informed choices.

Gambling Cross

It is particularly crucial to focus on aspects like prize chests. At YGAM, we maintain our involvement with numerous scholars, including David Zendle and Rachel Gordon at Newcastle University, who have conducted extensive investigations in this domain. We strive to be actively involved in future research endeavors exploring the connection between young individuals, prize chests, and problematic gaming.

The RSPH report titled “Skins in the Game” discovered that a substantial proportion (80%) of young individuals interviewed expressed the belief that prize chests are habit-forming.

There are apprehensions regarding granting access to prize chests to individuals under the age of 18, as it could potentially lead to the development of gaming habits at an unsuitable age. There is a valid reason why gaming products are subject to age limitations.

The cascading effect could result in a greater number of adults encountering difficulties with gaming or gambling, although there is insufficient evidence at present to definitively confirm this. Research conducted by David Zendle at York University concluded that the expenditure of individuals with problematic gaming habits diminished when prize chests were eliminated from games.

Our Red Brick research unveiled some disconcerting findings concerning the prevalence of gaming among young adults. The survey indicated that nearly half (47%) of students had engaged in gaming activities within the preceding 12 months. Among these participants, a significant portion (16%) were identified as exhibiting moderate risk or problematic gaming behaviors. On a national scale, this signifies that approximately 264,000 students in the UK are at risk of developing gaming problems, with an estimated 88,000 already classified as problematic gamers.

In the meantime, we trust the government’s plea will result in a comprehensive examination of the hazards associated with loot boxes. We also believe that loot boxes containing randomized items should not be made available to individuals under the age of eighteen.

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