Gambling and Video Gaming

Further complicating the issue, video game companies have started to shift their primary revenue from game sales to in-game purchases. These strategies go beyond a 1-1 exchange in the game however. Instead of getting an in-game upgrade for a set amount of real-world money, video game purchases often incorporate elements of chance, where players can spend real money for a random reward with items like “loot boxes.” If this sounds like gambling to you, then you are not alone.

Other games simulate gambling by requiring the up-front purchase of tokens for game play rather than in-game purchases and replicate the visual and auditory elements of a casino environment.

Unlike real-world gambling, these “gambling elements” are unregulated, but they still put kids at risk for the same problems gambling does. Research indicates greater spending on loot boxes is connected to problematic gambling in general, greater psychological distress, and greater risk for problematic gaming, in addition to the financial costs of excessive spending on these features.^1,2,3,4

Below, Children and Screens’ network of experts provide research, information, and advice focused on those gaming elements that converge with gambling elements and behaviors, the risks they may pose to youth well-being, and the steps parents, caregivers, and communities can take to help protect their kids.

Is gaming and gambling a real problem for youth?

“Research and clinical evidence consistently show that early exposure to and engagement in gambling is a risk factor for developing gambling problems. Our research shows that for some young people, playing gambling-themed games increases favorable attitudes towards gambling and subsequent use of real gambling. Paying to play simulated gambling increases the likelihood of transitioning to gambling by increasing the psychological proximity between the activities.”

– Professor Sally Gainsbury, PhD,
University of Sydney, Director – Gambling Treatment & Research Clinic

“Anywhere between three and five percent of adolescents are what we call probable, pathological, or compulsive or disordered gamblers. Another 8 to 15% are at risk for developing a problem.”

– Jeffrey Derevensky, PhD
James McGill Professor of Educational and Counseling Psychology, Professor of Psychiatry, and Director of the International Centre for Youth Gambling Problems and High Risk Behaviors, McGill University

“Playing video games, as well as watching the streaming of other gamers’ playing, has become one of the most popular activities among children and adolescents. There is a risk that young people will lose control over their video game play.”

– Zsolt Demetrovics, PhD
Chair of the Centre of Excellence in Responsible Gaming, University of Gibraltar and Professor of Psychology, ELTE Eötvös Loránd University

“[In 2019,] 23% of the 11 to 16 year olds that we spoke to had paid money to open a loot box to get in-game items. [In] mobile gaming, … many of them feature gambling mechanisms like roulette wheels and slot machines and use gambling vocabulary, further normalizing that behavior.”

– Kev Clelland
Director of Insight and Engagement, YGAM

“In many video games today, the player can spend an unlimited amount of money, as compared to in the past when a video game would cost the price of purchasing the software. Policymakers and regulators in many countries have recognised and are attempting to address the potential financial harms.”

– Leon Xiao, LLM, PhD fellow
IT University of Copenhagen, Visiting Scholar, Queen Mary University of London

“Loot boxes are items [in] games that can be bought with real world money, but which contain randomized contents…the top 59% of mobile games, top grossing mobile games, have loot boxes.”

– David Zendle, PhD
Lecturer of Computer Science, University of York

“Social casinos are games in which you could spend real money to buy gambling chips. You can engage in simulated gambling activities, [but] you can never cash out your earnings. Because of that, they’re not typically regulated as gambling products by governments and thus are available to youth and have a wide uptake amongst youth.”

– David Zendle, PhD
Lecturer of Computer Science, University of York

How can I tell the difference between problem behavior and normal behavior? 

“In terms of the signs of harm, it is that gaming to a degree that compromises, disrupts, or damages those family, personal and recreational pursuits. So it’s not  just the financial harm that that person is experiencing. They might not even be experiencing financial harm.”

– Kev Clelland
Director of Insight and Engagement, YGAM

“I would suggest that if your child is willing to speak openly about the games they play and how much they are spending, then you should speak to them. By doing so, you would be able to have a better grasp of whether you think they might be having a potentially harmful experience. If you choose and filter certain games based on their potentially harmful features using online resources (whilst explaining why you are doing so to your child if possible), you might also be able to better shield your child from potential harms.”

– Leon Xiao, LLM, PhD fellow
IT University of Copenhagen, Visiting Scholar, Queen Mary University of London

“Problem gambling occurs when the behavior starts to impact your child’s daily activities. We often see one or more of the following behaviors:

• Preoccupation with gambling (reliving past gambling experiences, watching gambling-related shows and increased interest in sports betting, thinking about ways to get money to gamble)
• Tolerance (the need to gamble more often with greater amounts of money)
• Loss of control (the inability to curtail or stop gambling)
• Withdrawal, restlessness or irritability when attempting to cut down or stop gambling
• Escape (using gambling as a way of escaping problems)
• Chasing behaviors (trying to catch up and recoup losses by continued gambling)
• Lies about the extent of their gambling to important people
• Illegal acts (performs illegal acts to continue to gamble. This often starts at home)
• Risks education and/or a relationship because of gambling”

– Jeffrey Derevensky, PhD
James McGill Professor of Educational and Counseling Psychology, Professor of Psychiatry, and Director of the International Centre for Youth Gambling Problems and High Risk Behaviors, McGill University

What can I do to prevent problematic behavior or intervene when necessary?

“Try to encourage gaming in groups rather than as a solitary activity. This will lead to children and adolescents talking and working together. Also remember that many online games are based on social activity and working together. Research has consistently shown that the main reason for playing online games is for the social element.”  

– Mark Griffiths, PhD
– Distinguished Professor of Behavioural Addiction, Director, International Gaming Research Unit, Nottingham Trent University

“Parents should not be purchasing scratch lottery tickets or gambling with their underage youth because we know that early gambling is a predictor of later problem gambling when they get older.”

– Jeffrey Derevensky, PhD
James McGill Professor of Educational and Counseling Psychology, Professor of Psychiatry, and Director of the International Centre for Youth Gambling Problems and High Risk Behaviors, McGill University

“You should play the video games that your child plays, and you should also talk to them about the games that they play, because quite often you have situations where the information that you’re hoping to obtain is not something that you can just Google. You would actually have to go inside the game to be able to find that information.”

– Leon Xiao, LLM, PhD fellow
IT University of Copenhagen, Visiting Scholar, Queen Mary University of London

“The Entertainment Software Ratings Board (ESRB) introduced this label, “In-game purchases (Includes Random Items)”. If a game contains loot boxes or any other in-game purchases with a randomized element, the ESRB will put that label underneath the age rating and this will be displayed both on the physical packaging or in relation to games that you simply download digitally…Look out for these labels. If you see a game has this label, then you know that that game definitely has loot boxes. This would be a way for you to identify these mechanics to address the potential harms. However, unfortunately, we know that many games with loot boxes on mobile platforms do not have the label accurately attached. So you need to be cautious with unlabelled games and try playing them yourself or search for relevant information online.”

– Leon Xiao, LLM, PhD fellow
IT University of Copenhagen, Visiting Scholar, Queen Mary University of London

“Follow the PLAY Rules from Young Gamers and Gambler’s Education Trust (YGAM).

• • Play with your kids. Understand the games that they are playing and why they play them. Talk to them about gaming. Show that real keen interest to understand what they’re involved with. You’ll understand which of those games are potentially riskier for them to be playing.
  • Learn about those family controls. Obviously there’s a whole variety of them…but try and follow some of the great advice websites that are out there. 
  • Ask your kids what they think. Discuss those ground rules before putting any restrictions in place.
  • You’re in charge. You don’t have to be an expert to have these conversations with young people. Let them be clear. Set those restrictions that work for your family.”

– Kev Clelland
Director of Insight and Engagement, YGAM

“Parents need to look out for any gambling simulations or mechanisms in games. Ideally, these should be avoided. For older teens, parents can discuss marketing and monetisation techniques used to encourage consumer spend and how to spot and avoid these.”

– Professor Sally Gainsbury, PhD
University of Sydney, Director – Gambling Treatment & Research Clinic

“Parents can do a lot to reduce this risk. Some tips:

• • • Help your child to plan and schedule time for playing. Video game use should not become an “anytime” and limitless activity. You can dedicate time to it, and if you do, that can help to keep the activity under control.
    • Monitor and help your child to monitor his/her video game use. This can help them be mindful of the time they spend gaming and learn how to self-regulate it.
    • Be interested in what your child is playing. Get involved and try to understand what they enjoy in gaming. Play together with him/her. This will help you to understand the games and your child’s motives and will allow you to have a shared platform to discuss related issues.”

– Zsolt Demetrovics, PhD
Chair of the Centre of Excellence in Responsible Gaming, University of Gibraltar and Professor of Psychology,  ELTE Eötvös Loránd University

“Talk to your child about gaming (and gambling too), and the risk they face of it becoming a problematic behavior or even addiction. The YGAM, Screen Time Action Network and Center for Humane Technology websites have terrific resources available for both you and your child. Reach out to an experienced mental health professional if gaming, gambling or digital media is overly affecting your child.”

–  Nadja Streiter, LMSW, IGDC
Digital Addiction Specialist, Eyes Up Wellness

“Limit game play at home and help older children come up with a plan to track and limit their gaming on their own. This can be in the form of blocking or monitoring apps or setting up parental controls on consoles and gaming services. Teens can do this for themselves but there is no shame in asking their parents to do it for them.”

– Nadja Streiter, LMSW, IGDC
Digital Addiction Specialist, Eyes Up Wellness

“Set limits on playing time. Tell children and adolescents that they can play for a couple of hours as a reward after they have done their homework or their chores – not before.”

– Mark Griffiths, PhD
Distinguished Professor of Behavioural Addiction, Director, International Gaming Research Unit, Nottingham Trent University

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¹Zendle D, Cairns P (2018) Video game loot boxes are linked to problem gambling: Results of a large-scale survey. PLoS ONE 13(11): e0206767. https://doi.org/10.1371/journal.pone.0206767 pmid:30462669

²Brooks GA, Clark L (2018) Associations between loot box use, problematic gaming and gambling, and gambling-related cognitions. Addict Behav. 96:26-34. doi: 10.1016/j.addbeh.2019.04.009. PMID: 31030176.

³Drummond A, Sauer JD, Ferguson CJ, Hall LC (2020) The relationship between problem gambling, excessive gaming, psychological distress and spending on loot boxes in Aotearoa New Zealand, Australia, and the United States—A cross-national survey. PLoS ONE 15(3): e0230378. https://doi.org/10.1371/journal.pone.0230378

⁴Zendle D (2020) Beyond loot boxes: a variety of gambling-like practices in video games are linked to both problem gambling and disordered gaming. PeerJ. 14;8:e9466. doi: 10.7717/peerj.9466. PMID: 32742782; PMCID: PMC7367055.