Loot boxes put children and teenagers at risk of ludopathy, a disease caused by gambling, research reveals

The recent change in the video game revenue model has placed children and adolescents at the target of ludopathy, a disease recognized by the World Health Organization (WHO), characterized by the uncontrollable desire to continue playing. It is no longer enough to just buy the game: now users also have to purchase the loot boxesor reward boxes, to progress or obtain advantages in the dispute, leaving this public at the mercy of the same effects of gambling, which are compulsive habits and debt.

To combat this trend, many countries have begun to implement stricter regulations. Argentina, the United States, the United Kingdom, Spain and Australia have already taken measures to limit minors’ access to gambling and loot boxes and increase control over user identity.

Defense bodies gathered at the European Consumer Organization (BEUC) and the European Parliament itself are discussing tightening rules within the bloc. In Brazil, entities led by Anced (National Association of Centers for the Defense of Children and Adolescents) are taking public civil actions to stop this practice. The Public Ministry of the Federal District and the Federal Psychology Council issued opinions in support of the ban.

“A few years ago, video games used to be purchased once, which guaranteed the complete experience. But nowadays companies in the sector usually offer their users video games for free, with loot boxes and other in-game transactions being the most important source of revenue”, says Camilo Gutiérrez Amaya, head of the Research Laboratory at ESET Latin America.

Reward boxes contain items such as new characters and skins from a specific game, resembling sticker packs from that theme that represent surprises for the player. They can be distributed free of charge in promotional actions, but are generally sold.

Influencers, often without transparency, encourage these practices. The consequences can be severe, ranging from the development of an addictive habit to debt, often unknown to parents.

Some of the main video game franchises, such as Candy Crush, Fornite, FIFA, League of Legends or Final Fantasy continue to release titles whose revenues to offset the cost of developing the game itself depend heavily on “loot boxes” or microtransactions.

Loot boxes

As “loot boxes” are a specific monetization dynamic represented in products that can be purchased at a specific stage of a game. They can hide items or rewards that are highly valued by communities. With random content and cost, these items acquired such an important status that an economy based on them emerged, which can even be used to bet on third-party sites.

“The mechanics of ‘loot boxes’ work literally like that of any casino: the user has to top up the account with monetary funds, then place their bet and, finally, wait for the graphics to rotate to find out whether they have won or lost. This is how the service provided by video games offers alarming similarities with the characteristics of an online casino: in fact, they imitate roulette and even slot machines”, adds the researcher from ESET.

To protect children and adolescents from this worrying scenario, the ESET recommends that family members maintain open communication about their children’s online activities, discussing the risks associated with pathological gambling and “loot boxes”. Furthermore, it is important to analyze gambling advertisements together so that young people can make decisions based on clear information and develop healthy habits. THE ESET also suggests encouraging participation in offline recreational activities and setting an example of a balanced use of digital devices, creating a safe and healthy environment for minors’ online interactions.