Predatory Gambling Practices in Video Games

With the July/August vacation upon us, video games may appear to be a harmless pastime to engage the attention of children. However, there is a growing dark side to this seemingly harmless pastime which is quietly going under the radar.Video games have a mass appeal amongst children

Video games enjoy significant popularity within Trinidad and Tobago particularly football and basketball simulations. Although sales figures for the most popular football simulation are difficult to gauge for Trinidad and Tobago, the game sold 2.25 million copies in the UK in 2023 alone; an extremely impressive feat given that the game was only released in the last quarter of 2023.

Furthermore, the game has an age rating of 13 + which suggests that the content is suitable for teenage audiences and above. However, in reality, these games due to their popularity and seemingly harmless nature are played by persons under the age of 13.

“Pay to Win” and Loot Boxes

Many of these sport simulation games contain a ‘free to play’ online mode which encourages the gamer to build a team comprised of the best current real-world players such as Cristiano Ronaldo, Steph Curry or past icons such as Pele or Michael Jordan.

There are two ways to go about building a team.

Firstly, you can either ‘play to win’ where you undertake a series of time consuming and sometimes frustrating tasks to unlock players for your team.

The second option is more attractive and time-saving with the promise of immediate reward where you can “pay to win”. With this approach, real world money can be used to buy in game packs which gives the gamer a ‘chance’ to pack the most desirable players.

These packs are called ‘loot boxes. ‘Loot boxes’ come in different types and are offered at different prices however, the general rule is that more costly ‘loot boxes’ offer better chances of packing the best players.

The Hidden Dark Side: Loot Boxes and Gambling

These ‘loot boxes’ are random in nature meaning there are no guaranteed rewards for spending real world currency. This structure closely mirrors the ‘risk versus reward’ premise of gambling because the gambler spends his money, taking a chance and hoping for the desired reward with no guarantee of the outcome.

Although this issue is yet to gain national attention, it is a growing source of contention within Europe.

In 2018, the Belgian Gaming Commission placed a complete ban on loot boxes whilst the Netherlands have followed suit. Similarly, as recently as 2023, the European Parliament noted the predatory nature of loot boxes and called for greater measures to be taken to ensure consumer protection particularly referring to loot boxes within video games.

Gambling Laws in Trinidad & Tobago

In Trinidad and Tobago, gambling is governed by the Gambling and Betting Act of 1963 which is of some age and naturally the Act envisaged no protection for young consumers against predatory loot boxes in video games.

Similarly, the Gambling (Gaming and Betting) Control Act of 2021 although of more recent vintage, and despite its stated objectives to (i) protect minors and other vulnerable persons from being harmed or exploited by gambling and (ii) ensure that gambling is conducted in a fair, open and responsible manner; does not frontally treat with the challenge of loot boxes in video games.

In fairness to Parliament, any attempt to regulate the effect of virtual loot boxes is challenging since these games are played mostly in private settings and on private devices. Moreover, multi-million-dollar companies also find loopholes around existing gambling laws.

Gambling: The real challenge facing parents

Notably, in January of 2020, the U.K.’s National Health Service (NHS) declared that loot boxes contribute to youth gambling addiction. In a release on the NHS website, Claire Murdoch, mental health director, wrote that the randomized structure of loot boxes sets “kids up for addiction by teaching them to gamble.”

Parents grapple with the traditional challenge of gambling where the addictive desire or thrill of ‘the big win’ encourages the gambler to accept the risk of being out of pocket or incurring debt.

However, in the context of video games, the traditional challenge is exacerbated. The increasingly realistic ‘movie like’ graphics of video games, marketing by popular real-world sport superstars, and licensing of popular teams and players make the simulation more realistic, immersive and addictive.

There are also a number of content creators on easily accessible social media platforms who post videos where packs are opened and desirable rewards are obtained. These videos are edited to convey the impression to the viewer that despite the risk of parting with real world currency, desirable rewards are merely one ‘loot box’ away, which of course, is an unrealistic impression.

Parental Supervision: The strongest line of Defence

The implications of ‘loot boxes’ in video games are frightening and it is a challenge area to regulate.

Nonetheless, since this form of gambling generally takes place within the private setting of one’s home and on personal devices such as consoles and computers, parental supervision of online purchases and intervention to break existing addictive habits, if necessary, may be the strongest measure to curtail these predatory practices amongst a young and vulnerable gaming population.

 

Submitted by:

Ravindra Rajah
Public Defender 11 Senior
Public Defenders’ Department
Legal Aid and Advisory Authority,
23 Stanmore Avenue, Port of Spain.
Contact: 638-5222
Email: [email protected]