A UK psychologist has been awarded over $1.2 million to research how children’s development is influenced by gambling-like systems in video games, such as loot boxes.

Dr. Calum Hartley of Lancaster University will primarily focus on elementary school children’s engagement with loot boxes in video games.

Over 90% of UK children aged 5-11 play video games, and one-in-three purchase in-game items, spending an average of £26 ($35) per month.

“Coercive pressure is exerted on children to engage with microtransactions through time-limited availability, rarity, and social desirability of virtual items,” said Dr. Hartley in an announcement revealing the funding. 

“Crucially, loot boxes share psychological and mechanistic similarities with gambling and are concurrently linked with mental health difficulties in adolescents. The risks posed by loot boxes may be particularly great for neurodivergent children, including those with ADHD and autism, who often spend more time playing video games than neurotypical peers.”

Research Could Fuel Lawsuits And Increased Regulation

Research has yet to determine how engagement with loot boxes develops, how they impact children’s broader psychological development, or who is most vulnerable.

Any results showing that the use of the items in games is detrimental to a child’s development and health is likely to be used in legal actions against gaming companies. 

Valve is already facing a string of lawsuits alleging its loot boxes encourage addictive play and encourage minors to gamble. 

“Generating this knowledge is vital to safeguard children and promote digital literacy for families navigating increasingly commercialized gaming environments,” Dr. Hartley added.

“The results of this research will inform the development of resources to support healthy engagement with video games by children and caregivers and, potentially, evidence-based policy recommendations calling for stricter regulation of loot boxes targeting children.”

Think of The Children

In the US, studies have claimed that as many as 1 in 3 teenagers are gambling, with loot boxes in video games blamed as an entry point.

In response, lawmakers have proposed several measures to tackle the problem. The New York Senate recently passed the ‘‘No Gambling Ads For Kids Act’, which would make it illegal “for a social media platform to promote advertisements for online gaming-related gambling, online sweepstakes gaming, sports-related gambling, or traditional online gambling unless an operator has reasonably determined that the user is not a minor.”

Last week, Pennsylvania lawmakers introduced a bill that would block access to gambling platforms on school campuses. 

The campaigns against underage gambling could see loot boxes more strictly regulated in the future. 

A wave of countries banning children from accessing social media may also have an impact. The UK this week introduced a ban on under-16s from using the platform, which research has increasingly shown to be harmful for development. The UK follows Australia and France, which have already introduced prohibitions. 

The new research project investigating loot boxes in the UK will run for three years in partnership with the charities YGam, Internet Matters and ADHD UK.