Gambling in video games is turning kids into addicts – the next PM needs to act

For too long, we have ignored the fact that gambling mechanics – spending money for an uncertain reward – have infested some of our favourite childhood pastimes. Whoever the new prime minister will be, if they want to meaningfully address the issue of problem gambling in this country, they must tackle the spread of gambling mechanics in digital space.

Arguably, when we look back to our childhood, we can find these mechanics everywhere: opening a Kinder Surprise egg, collecting “Match Attax” or “Panini” football stickers, or battling with Pokémon cards. For years, we spent our pocket money buying these things in the hope of receiving that rare or special reward that would help us win that next game, or make us the envy of the playground.

Although they might seem harmless in this form, technological development has given these mechanics a far more menacing and accessible shape. Playground card games have been replaced by their virtual equivalents through “loot boxes” – digital boxes that reward players with random items in exchange for money or in-game currency. We see this in online games such as FIFA, a football emulator that has over 9 million unique players every year.

At best, these forms of gambling mechanics offer a cruel and exploitative outlet for addicts; at worst, they act as a “gateway“ to future gambling addictions.

This trend is even more alarming in the context of the UK’s gambling epidemic. YouGov estimates the UK has up to 1.4 million problem gamblers – people whose gambling addiction has become harmful to themselves or others. The Gambling Commission suspects 50,000 of these are children.

For many, this gambling addiction doesn’t take place inside casinos and betting terminals, but in their living rooms. TeenagerJonathan Peniket talked about spending his university loan and family savings on FIFA loot boxes, addicted to the gambling mechanics within the game. But these mechanics don’t just target adults. There are numerous stories of children spending as much as £6,000 on FIFA loot boxes.

When these gambling mechanics are combined with a feeling among children and adults of being “pressured” to buy the loot boxes to remain competitive with their friends – as without the best cards you won’t remain competitive – we get a dangerous mixture of addiction and peer pressure.

How have we got this far without anything being done? The main reason is due to the legal definition of gambling. As the Gambling Commission has stated, gambling is when, “via a game of chance”, money, or something that can be exchanged for a monetary value, is received, and they argue that loot boxes fall outside of this.

It is up to the government to set clearer boundaries, but despite the similarities between gambling in games and more recognisable forms of gambling, ministers have been slow to evolve with technology. They have failed to recognise the significant value and advantage that each loot box reward can provide – and the negative effects that can result. Furthermore, a number of video game companies, such as Valve, have allowed players to trade items for money or an equivalent, therefore attaching a monetary value to the reward.

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Meanwhile, the Department for Digital, Culture, Media and Sports – despite acknowledging the harm of loot boxes and similar developments – have instead called upon gaming companies to reform and regulate themselves, rather than take any concrete action. Effectively, the government has washed their hands of the duty of regulating what is effectively gambling in a form of entertainment played by children and adults alike.

Without necessary government-imposed reform, companies will be left to self-regulate whilst facing no consequences for failing their duty of care. In fact, they are more likely to have an incentive to continue deploying gambling-like mechanics, as games like FIFA make four times the amount of money from “live services” like loot boxes than from actually selling the game.

This presents an opportunity for the incoming prime minister to set a new trend when it comes to gambling in the digital space and prove that the UK government will no longer continue to be on the back foot when it comes to digital policy. The new prime minister should take the initiative and take action on loot boxes, helping to tackle the UK’s problem gambling problem.

Max Anderson is senior communications officer at Bright Blue, a pressure group for liberal conservatism, and has written extensively on digital policy and mental health