Experts call for regulation on gaming loot boxes

The Problem Gambling Foundation is calling on the Government to regulate gaming loot boxes for young people and those vulnerable to gambling harm.

The shiny-looking treasure chests exist within games and contain new characters, costumes, and even in-game currency or upgrades.

The catch is they cost real-world money and are completely randomised, meaning gamers never know what they're going to get.

Experts are worried about the early relationship they create with problem gambling, particularly young people and those vulnerable to harm.

"We would like to see some form of regulation to protect consumers," Problem Gambling Foundation (PCF) spokesperson Andree Froude said.

Dr Aaron Drummond is a cognitive cyber-psychologist who has studied the effects of loot boxes. He said they are a real concern for younger people who are still in their early years of development.

"Essentially there's robust evidence now to suggest there's an association between problem gambling symptomology and loot box spending.

"The relationship between problem gambling and loot box spending is about twice as strong in adolescence as it is in the general population. It is a formative set of years in their adolescence and their frontal lobes not fully developed."

Drummond, along with the Problem Gambling Foundation, wants consumers to have more information.

"Currently there are no warning labels required on a box or game containing loot boxes, so providing individuals with the information these things are randomised and that they're paid for with real world money."

The United Kingdom's gaming industry is taking steps to self regulate, announcing new rules for loot boxes.

It has put forward 11 new principles to the Government to consider, including banning loot boxes for under 18 year olds unless they have parental or guardian consent, launching nationwide awareness campaigns, and creating full-disclosure labelling on games that have them.

The Problem Gambling Foundation said it supports the UK's move and would like to see the same in New Zealand.

"That would go a long way to prevent and reduce the harm from loot boxes," Froude said.

In Australia, the Government has proposed its own crackdown for the industry to adopt, including giving games with loot boxes M-ratings restricting them to over 15 year olds.

At the moment, there is currently no regulation for loot boxes in New Zealand.

The Department of Internal Affairs said loot boxes do not fit the definition of gambling.

But the Problem Gambling Foundation disagrees.

"It has been shown that loot boxes are psychologically similar to conventional forms of gambling," Froude said.

"Several studies found people experiencing harm from gambling tend to spend more on loot boxes."

Drummond said loot boxes require restrictions.

"Currently there are no warning labels required on a box or game containing loot boxes, so providing individuals with the information these things are randomised and that they're paid for with real world money."

New Zealand ESports Federation said while it remains neutral on the issue, it recognises it could be a problem.

President Conor English said he would welcome change if needed.

"If it becomes a big problem, and it's obviously a problem, it should be something the Government should look at."

David Sproson got into thousands of dollars worth of debt because of his addiction to loot boxes.

Sproson, who lives in the United Kingdom, said loot boxes cost him savings for a new house and nearly ruined his marriage.

"The time when it really fully hit home for me was when my wife found out I had done everything," Sproson said.

"We're sat there at the table, nine months pregnant and due in less than two weeks, and she was in tears and I could see how much it had hurt her."

He said the proposal for regulation cannot come any sooner.

"There are times where I laid in bed at night and cried. I started to get to a point where I couldn't afford the loot boxes using disposable income and I started using pay day loans."

According to Statista, gamer spending on loot boxes is currently estimated at $28.8 billion and is set to surpass $32.8 billion by 2025.