Press Releases

Videogame loot boxes similar to gambling

Published

7 years ago

June 21, 2018

Adolescents playing video games that offer randomised rewards to increase competitive advantage could be being exposed to mechanisms that are psychologically similar to gambling, according to new research just published in Nature Human Behaviour .ATTN: Teens at risk as video game ‘loot boxes’ deemed similar to gambling…

Videogame loot boxes similar to gambling

The paper, Video game loot boxes are psychologically akin to gambling, was co-authored by Dr Aaron Drummond, from Massey’s School of Psychology and Dr James Sauer, from the Department of Psychology at the University of Tasmania. Their work focussed on video games that offer purchasable randomised rewards, called ‘loot boxes’, and raises the question of whether such games should be regulated.

“Our analysis of the characteristics of loot boxes in 22 games rated by the Entertainment Software Ratings Board (ESRB) as appropriate for audiences 17 years old or younger reveals that loot boxes have important structural and psychological similarities with gambling,” the authors say.
They found that nearly half (45 per cent) of the games they analysed met all five of the psychological criteria to be considered a form of gambling. They say that on face value, “loot boxes present a number of striking similarities to real-world gambling.”

What is a loot box?

A ‘loot box’ is a catch-all term for a digital container of randomized rewards that alter the game in some way. “Rewards may allow players to personalise aspects of the in-game aesthetic (for example, alter their avatar’s appearance) or improve in-game performance (for example, via powerful weapons),” the authors say. Possessing rare game rewards is therefore highly desirable – and of particular interest to the study’s authors is the increasing trend “to allow players to purchase loot boxes using real- world currency.”

“Players often purchase loot boxes for money and receive rewards of varying value based on chance. Thus, over multiple purchases, players will receive a high-value item on average every X number of times they open a box (where X represents a number of openings determined by a pre- defined algorithm).
Due to the random nature of rewards, the exact number of boxes that require purchase to obtain a valuable item varies. “This kind of reward structure is termed a variable ratio reinforcement schedule, and underpins many forms of gambling,” the authors say. “The risk is that variable ratio reinforcement results in people quickly acquiring behaviours and repeating these behaviours frequently in the hopes of receiving a reward.

Game or gamble?

Whether loot boxes are a form of gambling present important ethical and regulatory implications, the authors say. “If loot boxes are akin to gambling (the legal age for which is 18 or older in most US states, and in many countries), this would raise serious concerns about their appropriateness for games available to younger audiences.”

“Parents need to be aware that some games contain gambling-like mechanisms. Engaging with these mechanics could plausibly result in overspending or, some researchers suggest, even result in migration to more traditional forms of gambling,” says Dr Drummond, who co-leads the International Media Psychology Laboratory with Dr Sauer, and is the director of the Manawatū campus laboratory where he specialises in researching the impact of digital media on cognition and behaviour.

“Research investigating the exposure of adolescents to simulated gambling suggests that risks such
as peer pressure and a dilution of monetary value through the exchange of real currency for virtual currency might facilitate migration to monetary forms of gambling.”

The research applied five established characteristics common to most gambling activities, and that distinguish gambling from other risk-taking behaviour, and found that almost half of games that contained loot-boxes met these criteria:

o The exchange of money or valuable goods.
o An unknown future event determines the exchange.
o Chance at least partly determines the outcome.
o Non-participation can avoid incurring losses.
o Winners gain at the sole expense of losers.

“Given these features are similar to those underlying traditional forms of gambling, the Belgium Gaming Commission and Australian and US regulators are investigating whether loot boxes constitute a form of gambling,” the report says. “However, at present, there is no consensus on whether such simulated forms of gambling constitute illegal gambling operations.”

New Zealand has more game developers per capita than any other country in the world, says Dr Drummond. “Understanding the psychological risks of mechanics such as loot boxes is essential to ensuring that the New Zealand game industry remains at the forefront of ethical and sustainable video game development.”

The paper is available online at Nature Human Behaviour.

Source: Press Releases Published on European Gaming Media Network

Related Topics:gambling industry in Europe Videogame

George Miller

George Miller (Gyorgy Molnar) started his career in content marketing and has started working as an Editor/Content Manager for our company in 2016. George has acquired many experiences when it comes to interviews and newsworthy content becoming Head of Content in 2017. He is responsible for the news being shared on multiple websites that are part of the European Gaming Media Network.

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Bulgaria

SOFTSWISS Gets Certification for Its Jackpot Aggregator in Bulgaria

Published

2 months ago

October 15, 2024

George Miller

SOFTSWISS, a leading technology provider for iGaming, has further solidified its presence in the European market by securing certification for its Jackpot Aggregator in Bulgaria.

The iGaming market in Bulgaria is experiencing significant growth, attracting new businesses despite stringent domestic regulations. The market is projected to generate 168.70 million euro in revenue by 2028, with an annual growth rate of 5.42%. The number of users is expected to reach 377.3 thousand by the same year, further highlighting the sector’s momentum.

In line with this growth, SOFTSWISS announces that its Jackpot Aggregator has received certification from Gaming Laboratories International (GLI), ensuring it meets all technical requirements for use in the Bulgarian market. With the new certification of the SOFTSWISS Jackpot Aggregator, Bulgarian-licensed operators can integrate this advanced engagement tool into their casino offerings.

In May, SOFTSWISS successfully entered the Bulgarian market through a partnership with Topwin.bg, which implemented the SOFTSWISS Casino Platform, the Game Aggregator, and the Sportsbook.

“We are seeing a strong surge in interest in our jackpot mechanic, fueled by the growing demand for engagement tools in the market. That’s why we are committed to further developing the Jackpot Aggregator, enhancing its features, and expanding into new markets. Certification for the Bulgarian market is a clear testament to our ambition and drive for expansion. We are actively working on obtaining certifications in other jurisdictions,” comments Angelina Stasiuk, Head of Business Line at SOFTSWISS Jackpot Aggregator.

SOFTSWISS has several international and national licences and certifications, including a South African licence acquired through the purchase of a majority stake in Turfsport. The company recently announced its plans to become the first certified software provider in Brazil.

About SOFTSWISS

SOFTSWISS is an international technology company with over 15 years of experience in developing innovative solutions for the iGaming industry. SOFTSWISS holds a number of gaming licences and provides comprehensive software for managing iGaming projects. The company’s product portfolio includes the Online Casino Platform, the Game Aggregator with over 23,500 casino games, the Affilka Affiliate Platform, the Sportsbook software and the Jackpot Aggregator. In 2013, SOFTSWISS revolutionised the industry by introducing the world’s first Bitcoin-optimised online casino solution. The expert team, based in Malta, Poland, and Georgia, counts over 2,000 employees.

Latest News

Are slots losing popularity?

Published

1 year ago

October 3, 2023

George Miller

What are the most popular games? What iGaming providers have achieved the greatest success? SOFTSWISS, an innovative company providing a complete ecosystem of comprehensive software solutions, shares valuable insights across regional markets.

The analysis presented is based on the Game Aggregator data spanning the second half of 2022 and the first half of 2023.

Europe

Slot games remain popular in Europe, even though they lost around five p.p. during H2 2022 and H1 2023. Despite this decline, their market share still exceeds 80% among the other gaming categories. In contrast, card games improved their position by almost four p.p.

The top five most popular game categories underwent minor changes in Q2 2023. The Total Bets Sum in Craps games saw a substantial increase, growing 2.7 times in comparison to the previous quarter. This boost in performance secured the fifth position for this type of games in the top rankings, displacing casual games.

Gates of Olympys, Big Bamboo and Midas Golden Touch emerged as some of the most popular games during the past year. Notably, the landscape of top games exhibited significant variations from quarter to quarter.

In the European gaming sector of 2022-2023, top-performing game providers include Amatic, Amusnet (EGT), BGaming, Evolution, Pragmatic Play, Push Gaming, and Relax Gaming. Their positions in the rankings experienced subtle shifts from quarter to quarter.

Asia

The top five most popular game categories in Asia have exhibited a consistent trend since the final quarter of 2022. Slot games hold a prominent position in the asian gaming landscape, with their market share exceeding 80% compared to other categories.

Gates of Olympys claimed the title of the most popular game in Asia in Q4 2022, and has maintained its leading position since. Meanwhile, another popular game, Bonanza Billion, has experienced fluctuations in its rankings within the top five since the end of the previous year. The Total Bets Sums of Aviator increased twofold during the first half of this year, propelling the game into a leadership position. In contrast, the once-popular game, Hot Fruits, lost its foothold in the top rankings during the second quarter of 2023.

As for the most successful game providers in Asia, it should be noted that Evolution, Pragmatic Play and BGaming have continually jostled for positions within the top five over the past four quarters under review. Play’n Go and Amatic ceded their places in the rankings to 1spin4win and Amusnet (EGT), with the latter heading the list in Q2 2023.

Tatyana Kaminskaya, Head of SOFTSWISS Game Aggregator, comments: “The popularity of the Aviator game can be explained by simple interface and fast payouts. What sets it apart even further is its distinctive gameplay mechanics, which significantly differ from other crush games in the market. Notably, Aviator provides players with the illusion of “control” over the game, adding an extra level of excitement and intrigue.”

Latin America

The top five of the most popular game categories in LatAm have remained consistent over the last year, with almost 60% of these categories dominated by slots.

The current top five most popular games are as follows:

Roleta Brasileiri – 8.27%
Aviator – 5.97%
Gates of Olympus – 5.24%
Sweet Bonanza – 3.44%
Crazy Time – 3.14%

Notably, Aviator surged to the top in Q4 2022, experiencing a significant increase in the Total Bets Sum, nearly 170 mln euro more in comparison with the previous quarter. This success propelled its provider, Spribe, from the tenth place in Q3 2022 to the fourth in Q2 2023, displacing Play’n GO from the top five. Other providers, specifically Pragmatic Play, Evolution, Playtech, and BGaming, remained in the top with minor shifts in their rankings over the past year.

The top five most popular games account for approximately 25% of the Total Bets Sum across all games in Latin America, while in Europe and Asia the same covers around 10%. Another noteworthy market trend is the displacement of slots with roulette, and the growing preference for live games.

Carla Dualid, Regional Business Development Manager at SOFTSWISS in LatAm, comments: “Players in Latin America in the context of online gambling may differ from players in Europe in several ways. Most Latin American players bet through mobile devices and prefer online play. Local casino slot players tend to place small but regular bets, which distinguishes them from European online casino players, who, in turn, bet less frequently, but wager larger sums on slots. Speaking about the LatAm market, we should keep in mind that Brazil is the most active player in it. Such factors as economic potential, increasing Internet penetration, mobile accessibility, and regulatory changes are making the Brazilian market more attractive for operators.”

About SOFTSWISS

SOFTSWISS is an international iGaming company supplying certified software solutions for managing gambling operations. The expert team, which counts 1,400 employees, is based in Malta, Poland, Georgia, and Belarus. SOFTSWISS holds a number of gaming licences and provides one-stop-shop iGaming software solutions. The company has a vast product portfolio, including the Online Casino Platform, the Game Aggregator with thousands of casino games, the Affilka affiliate platform, the Sportsbook Platform and the Jackpot Aggregator. In 2013, SOFTSWISS was the first in the world to introduce a Bitcoin-optimised online casino solution.

iGaming

Hop into Fun and Prizes with Easter Plinko Slot: Unleash the Easter Magic!

Published

1 year ago

July 14, 2023

George Miller

Easter is just around the corner, and what better way to celebrate than by hopping into the exciting world of Easter Slot Plinko? Get ready to unleash the Easter magic with this thrilling slot game that promises fun, prizes, and endless entertainment. Whether you’re a seasoned slot player or new to the game, Easter Plinko Slot offers an unforgettable experience that will leave you craving for more.

Discover the Charm of Easter Plinko Slot

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Easter Plinko Slot is designed to cater to players of all skill levels, ensuring that everyone can have a fantastic time. Whether you’re a casual player looking for some lighthearted entertainment or a high roller seeking big wins, this slot game has something for everyone.

Experience Unmatched Gameplay

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