Loot Boxes Could Lead to Increased Gambling Among Young People, Study Warns

A recent study from the Responsible Gaming Agency in New South Wales (NSW) cautions that novel forms of wagering, such as loot boxes, could entice more young individuals to gamble, potentially leading to an increase in gambling-related issues in the years to come.

The study, conducted by researchers from Central Queensland University, investigated the evolving landscape of gambling among children, adolescents, and young adults.

The researchers polled 2,004 individuals aged 18 to 29 residing in the state, requesting them to complete an online survey regarding their gambling and gaming behaviors.

The primary findings revealed that individuals between the ages of 25 and 29 were more likely to have participated in gambling activities within the past year, including sports betting or slot machines. Lotteries emerged as the most prevalent form of gambling, with 64.8% of this age group having engaged in lottery play within the past year, followed by scratch-off tickets at 62%.

A mere 2% of individuals partake in conventional forms of wagering, whereas 52.9% engage in slot machines.

Nonetheless, younger individuals between the ages of 18 and 24 are more inclined to participate in novel forms of gambling and simulated gambling, such as purchasing loot boxes and skin betting in video games, where individuals gamble utilizing virtual items. Within this age bracket, roughly 50% have opened loot boxes in video games over the past year, while 44.9% have played games that encompass some form of gambling mechanism.

For this age group, the survey uncovered that individuals are more likely to have participated in some form of wagering prior to the age of 18, with 62.7% having played video games that incorporate gambling content. This also represents the highest proportion in the older age group, but only 44.5% have played these games.

Older groups are more prone to recall being introduced to gambling in the company of family members, including parents, although the younger group also reported being introduced to gambling in this manner. In the older group, 11.1% stated that adults in their household gambled regularly, compared to only 7.0% in the younger group.

The research also unearthed that those who engaged in novel forms of gambling as minors were not considerably more likely to experience gambling-related harm, but those who gambled for the first time at age 18 were “significantly more likely” to encounter harm in the past 12 months.

Researchers also observed that the association between each novel form of gambling harm “remained statistically significant” after accounting for age, impulsivity, and participation in conventional forms of wagering.

Experts have determined that new types of wagering have the capability to supplant conventional gambling amongst the youth.

The document asserts, “Younger demographics are less inclined to participate in traditional forms of gambling in comparison to older demographics.” “Although they are more likely than older generations to recollect their initial encounter with traditional gambling during their adolescence, this does not necessarily translate into sustained involvement in adulthood.”

“These findings indicate that conventional gambling products might be less captivating to this younger generation who grew up engaging in interactive games.”

The investigation also highlights that younger demographics are less prone to reporting exposure to adult gambling within the household compared to older generations, which could potentially explain their reduced participation in conventional gambling forms.

However, the study also acknowledges that the emergence of novel gambling forms has the potential to expose young individuals to gambling at an early stage, leading to real-money wagering in adulthood and potentially causing detrimental effects. Consequently, researchers advocate for further investigation to ascertain whether this lower level of harm amongst this younger generation will endure.

Its astonishing that individuals exposed to novel gambling methods in their youth aren’t more prone to gambling-related issues than others. This might be because these new forms are less expensive than conventional ones.

However, as young individuals might be replacing traditional gambling with these emerging methods, it’s crucial to analyze these new forms to determine how they can be modified or regulated to lessen their potential harm.

Experts, summarizing their discoveries, stated that while young people’s reduced participation in conventional gambling might help decrease gambling-related harm, increased engagement in emerging forms could maintain or worsen gambling harm in the future.

“We conclude that these new forms aren’t innocuous and require further scrutiny as they attract young people who are susceptible,” researchers stated. “Considering the rapid pace of technological advancements in gambling, it’s essential to continue research into new forms of gambling and simulated gambling in the future.

“Since each form operates differently and current regulatory approaches vary, any changes to regulations will need to be considered on a case-by-case basis.”

In related news, the New South Wales Responsible Gambling Office has committed a total of AU$236,000 (£128,832/€142,716/$168,909) to four new projects to help address gambling-related harm among young people in the state.

The Odds on Youth initiative in southwestern Sydney, New South Wales, is providing financial support for fresh endeavors aimed at assisting young individuals in comprehending the perils associated with wagering.

The Cumberland City Council will be granted $60,000 to develop a localized awareness campaign and educational materials regarding gambling. Fairfield City Council will also receive $60,000 to back a collection of videos that instruct young people on identifying the signs of gambling issues.

Campbelltown Headspace will obtain $60,000 for their Cash Me Outside project, which will encompass educational materials, accounts from individuals who have encountered gambling difficulties, and training for youth workers.

The Woodville Alliance will be awarded $56,000 for their Game Over: Vietnamese Youth project, which will produce brief films about gambling and its detrimental consequences, specifically targeted at young people of Vietnamese heritage residing in Fairfield.

Natalie Wright, Director of the NSW Office of Responsible Gambling, stated, “Research indicates that young adults aged 18 to 24 are more susceptible to experiencing difficulties with gambling. This is the reason we have programs like Odds on Youth, which concentrate on early intervention and education for these communities.”