Loot boxes in video games linked with problem gambling

New research by the University of Wolverhampton and the University of Plymouth has found a strong link between problem gambling symptoms and loot box expenditure, while finding no link between expenditure and earnings. 

The research was commissioned by GambleAware to see if there were any links between purchasing in-game items (such as loot boxes) and problem gambling, along with the psychological profiles of young people and adults who buy loot boxes, their motivations for purchasing, and any potential harms they may experience.

Loot boxes are purchasable features in video games that give randomised rewards. Due to their similarities with gambling, there are fears that loot box purchasing may be associated with problematic gambling. At the end of 2020, the UK loot box market was estimated to be worth £700m.

Dr Joanne Lloyd, Senior Lecturer in Psychology, said: “One of the aims of the project was to see if high spending players, known as ‘whales’, are simply high-earning individuals, or if they are more likely to be at-risk individuals, such as problem gamblers.”

The team analysed self-reported spend data from 7,771 loot box purchasers, and found that while for many players, monthly expenditure on loot boxes is modest (less than $20), the distribution is highly skewed. Around five per cent of the gamers in the sample were high-level spenders, or ‘whales’, spending more than $100 per month, who likely accounted for over half of the loot box revenue.

Despite the industry’s claims that these gamers are typically high-earners, the researchers found that there was a lack of relationship between loot box expenditure and annual earnings.