Gaming and Gambling

Gaming Has Changed

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Games used to have an upfront cost with no further additional purchases required to complete a game

Free Games?

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Many games are now actually free to start with

Loot Boxes

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Players are encouraged to make in game purchases to enhance and improve game play through the purchase of a LOOT BOX

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What is a loot box?

Where players pay real money to 'open'  a virtual box and at the point of purchase do not know the value of what they are getting.


These virtual items can take on different forms, such as weapons, armour, in‐game abilities or skills, and aesthetic items (commonly referred to as skins).


These items range in value. Some may be new items that allow players to progress in game or are highly sought after, while others are common and undesirable



Loot Boxes - A Gateway to gambling?

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Randomised Rewards

Many consider loot boxes to be gambling as players are using real money to make micro-transactions based on chance but as a player cannot 'allegedly' cash out winnings they are currently not covered by gambling regulations 

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Did you know

There are currently no age restrictions on the purchase of loot boxes


It is estimated that over $30 billion dollars are spent on loot boxes world wide


A recent report commissioned by the UK Gambling Commission found that as many as 31% of children aged 11-15 had opened a loot box


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Skins

Skins are rewards from loot boxes and are cosmetic items that are designed to improve a players appearance


Many skins are worthless - rarer skins are more valuable


Skins can be converted into virtual gambling chips on third party websites and used in casino style games to win more 'valuable' skins or real money

Dr DAVID ZENDLE - York ST JOHN UNIVERSITY

Loot Boxes ...

Dr. David Zendle is a media  effects specialist and a lecturer at the University of York. He is an  expert on the convergence of video games and gambling, and is the lead  author of several key references on the topic of loot boxes. Dr. Zendle  has provided oral testimony to a variety of government investigations  into video game effects, including the recent DCMS Select Committee  Inquiry into Immersive and Addictive Technologies. His research was  extensively cited in the findings of this inquiry, which recommended the  regulation of video game loot boxes as a form of gambling. He continues  to actively contribute to discussions regarding video game policy  across the globe.


"Spending money on loot boxes is connected to problem gambling.  The more money people spend on loot boxes, the more severe their problem gambling is.  If loot boxes do cause problem gambling then we’re looking at an epidemic of problem gambling the scale of which the world has never seen."

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Non-Monetary gAMBLING

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Spin and Win

Many games have an element of non-monetary gambling

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Virtual Currency

Players can experience the thrill of gambling through gambling virtual currency

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Real Money

Players are then incentivized to spend real money for a 'greater' reward

Gambling related advertising

Big Win

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Many  non- gambling games contain gambling related adverts

Jackpot

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 A recent study from the University of Cardiff found that almost half of 11-16 year olds admitted to have been involved in some form of gambling

Apocalyptic Win

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It is reported that almost half a million children in England and Wales are gambling regularly, with about 55,000 estimated to have a serious problem