Australian Gaming and Screens Alliance warns loot boxes are a gambling gateway
Collection of experts believe loot boxes normalise gambling for young people and erode their sense of caution
The Australian Gaming and Screens Alliance (AGASA) has warned video games that include loot boxes can acclimatise young people to gambling and erode their sense of caution.
The group has also cautioned that Australia is lagging behind in terms of treating gaming addiction and that parents of young players are struggling to help violent and withdrawn teens whose addiction is causing mental and physical issues.
In a submission to the federal government, the alliance said that the community was unaware that loot boxes were becoming so prevalent.
The evidence the group submitted includes a literature review of 19 studies into loot boxes. The review revealed causal links between loot boxes and problem gambling, and recommended that the buying of loot boxes should be classed as gambling.
Alliance chair Professor John Saunders said: “There is evidence emerging that these monetised forms of video games represent an entry into online gambling.
“Young people spend an increasing amount of money on loot boxes, and they can run into financial problems. Parents suddenly find that a thousand dollars from their credit card has disappeared. Some spend $10,000 (£5,533.52) to $20,000 a year.”
An alliance statement added: “Unless urgent action is taken to curb this increase in this form of gambling, AGASA considers that a generation of young people will be acculturated into considering gambling within online games an unremarkable, indeed desirable experience, without appreciating its negative consequences and the need for caution.”
In opposition, the Interactive Games and Entertainment Association argued that loot boxes were mostly about prizes, while gambling involved money. Furthermore, it referenced that Belgium’s regulation of loot boxes has been ineffective.
The association said: “We would like to highlight the serious and existential risk that an inclusion of loot boxes as a ‘gambling service’ under the IGA would have on the local Australian game development industry.”