Loot Boxes in Video Games Analysis: Should it be legal?
Gambling has plagued the video game industry. It seems like almost every AAA game has gambling mechanics in there. Gears of War 4, Overwatch, CSGO, Call of Duty, PES, FIFA, the list goes on. It has almost become the norm in gaming now to feature a slot machine commonly known as “supply drops”, “loot boxes” or “packs”.
What is a loot box?
In a technical sense, the player will open a box in a video game where a random number generator will decide what items they will win on that box opening. Which in gambling terms is a spin. The way loot boxes/packs etc are opened is the exact same method as a real life slot machine would. Opening a pack/loot box is essentially a slot machine spin.
Winning rare items from these loot boxes or packs gives off that same exhilarating buzz as winning on the slot machine or roulette. The complete unknown and suspense you get from opening a pack gives off that same feeling as spinning on a slot machine or eagerly waiting for that ball to stop on the roulette wheel.
Usually you will have an in game currency that will be earned through simply playing the game, and in some games, rewarded bonus currency for accomplishing certain things in the game. The currency can be used to open these loot boxes where a completely random set of items will be rewarded to you. The player will have the option to buy more loot boxes/packs with real money. The game will usually only give enough currency, essentially free spins, to give you a taster. The goal is to give you just about enough for free, so that you have the urge and temptation to spend real money on these loot boxes. This is very much the same sort of tactics found in bookmakers and casinos.
Gambling has an effect on the brain. Being able to straight up buy items doesn’t feel as rewarding. Why do you think many people use those claw machines to win toys for their family or themselves? They could quite easily straight up buy the toy from a shop, but instead would rather play, some even become stubborn and end up spending more money than what the toy even sells for.
Most gamers collectively have a threshold on where a line shouldn’t be crossed. Most gamers are accepting of these loot boxes, provided they only contain cosmetic items only, and do not feature anything that changes the gameplay. To put this into a black and white perspective, gameplay changing lootboxes, are the equivalent of having to gamble on a slot machine to win the ability to watch the latest episode of your favourite TV show. Cosmetic only lootboxes, are the equivalent of being able to watch an episode that you have already seen, but this time the characters are wearing different cooler costumes.
Now although I can agree with the stance on, “it’s ok if it’s cosmetic only” to an extent, because from a personal perspective, it does not change my game in any way, I still think it's unethical. Firstly, cosmetic only boxes could be a gateway to items that do affect the gameplay by getting gamers to first accept the less extreme cosmetic only gambling philosophy.
Winning rare items from these loot boxes or packs gives off that same exhilarating buzz as winning on the slot machine or roulette. The complete unknown and suspense you get from opening a pack gives off that same feeling as spinning on a slot machine or eagerly waiting for that ball to stop on the roulette wheel.
Usually you will have an in game currency that will be earned through simply playing the game, and in some games, rewarded bonus currency for accomplishing certain things in the game. The currency can be used to open these loot boxes where a completely random set of items will be rewarded to you. The player will have the option to buy more loot boxes/packs with real money. The game will usually only give enough currency, essentially free spins, to give you a taster. The goal is to give you just about enough for free, so that you have the urge and temptation to spend real money on these loot boxes. This is very much the same sort of tactics found in bookmakers and casinos.
Gambling has an effect on the brain. Being able to straight up buy items doesn’t feel as rewarding. Why do you think many people use those claw machines to win toys for their family or themselves? They could quite easily straight up buy the toy from a shop, but instead would rather play, some even become stubborn and end up spending more money than what the toy even sells for.
Most gamers collectively have a threshold on where a line shouldn’t be crossed. Most gamers are accepting of these loot boxes, provided they only contain cosmetic items only, and do not feature anything that changes the gameplay. To put this into a black and white perspective, gameplay changing lootboxes, are the equivalent of having to gamble on a slot machine to win the ability to watch the latest episode of your favourite TV show. Cosmetic only lootboxes, are the equivalent of being able to watch an episode that you have already seen, but this time the characters are wearing different cooler costumes.
Now although I can agree with the stance on, “it’s ok if it’s cosmetic only” to an extent, because from a personal perspective, it does not change my game in any way, I still think it's unethical. Firstly, cosmetic only boxes could be a gateway to items that do affect the gameplay by getting gamers to first accept the less extreme cosmetic only gambling philosophy.
Gambling laws and regulations
The impact of introducing gambling into video games could have a detrimental impact on society in years to come. The most worrying thing of all is how many young kids are playing these video games and investing into these gambling mechanics. I believe that this could potentially create a new generation of gambling addicts. These kids that are 11 years old opening packs today, could be down the casino or bookies 10 years later gambling real money and enticed to do so because of the gambling philosophy they adopted through these big AAA video games. Video games could be conditioning the next generation to gambling.
As someone who has worked in the gambling industry in the past, I have seen what gambling can do to people. I can understand why it is so addictive and how easy it could be to lose control. Gambling is essentially a business strategy that preys on our human weaknesses. Gambling can be fun, but it can also be very dangerous hence why there are so many laws and regulations in place set by the government. This is to stop gamblers losing control and not allowing bookmakers and casinos to profit off of people’s weakness. The problem is, these same laws and regulations do not apply to video games.
The gambling commission in the UK enforce casinos and bookmakers to induct fair business practices. The gambling commission make sure that gambling is conducted in a fair and open way. Through laws and regulations they are making sure that the vulnerable and children are not being exploited by gambling.
The biggest question is why are there no regulations to protect gamers and consumers of these gambling business practices in video games?
As someone who has worked in the gambling industry in the past, I have seen what gambling can do to people. I can understand why it is so addictive and how easy it could be to lose control. Gambling is essentially a business strategy that preys on our human weaknesses. Gambling can be fun, but it can also be very dangerous hence why there are so many laws and regulations in place set by the government. This is to stop gamblers losing control and not allowing bookmakers and casinos to profit off of people’s weakness. The problem is, these same laws and regulations do not apply to video games.
The gambling commission in the UK enforce casinos and bookmakers to induct fair business practices. The gambling commission make sure that gambling is conducted in a fair and open way. Through laws and regulations they are making sure that the vulnerable and children are not being exploited by gambling.
The biggest question is why are there no regulations to protect gamers and consumers of these gambling business practices in video games?
The effect gambling has on the brain
Lets just quickly look at how people get addicted to gambling and what effect it has on the brain.
Dopamine is a chemical in your brain that releases during pleasurable situations. When it releases it makes you feel good. It’s known as the reward chemical. When you get likes on your status, when you beat a game on the hardest difficulty, when you pass an exam, when you finish creating something. You feel satisfied. Dopamine is released.
Dopamine is also released when you win at gambling. Here’s a quick study on your brain on slot machines. This study is based on an experiment giving juice to monkeys, and compares it to gambling.
“At first, the neurons don't get excited until the juice is delivered. The cells are reacting to the actual reward. However, once the animal learns that the light always precedes the arrival of juice, the same neurons begin firing at the sight of the light instead of the reward. Schultz calls these cells "prediction neurons," since they are more interested in predicting rewards than in the rewards themselves.
These predictions are a crucial source of learning, since the monkey constantly compares its expectations of juice with what actually happens. For example, if the light is flashed but the juice never arrives, then the monkey's dopamine neurons stop firing. This is known as the "error signal." The monkey is disappointed, and begins to change its future predictions. However, if the monkey receives an unexpected reward -- the juice arrives without warning -- then the dopamine neurons get extremely excited. A surprising treat registers much larger than an expected one.
"A reward that's unpredictable typically counts three or four times as much," Schultz says.
Games of chance prey on this neural system. Consider, for example, the slot machine. You put in a coin and pull the lever. The reels start to whirr. Eventually, the machine settles on its verdict. Chances are you lost money.
But think about the slot machine from the perspective of your dopamine neurons. Whenever you win some money, the reward activates those brain cells intent on anticipating future rewards. These neurons want to predict the patterns inside the machine, to decode the logic of luck.
Yet here's the catch: slot machines can't be solved. They use random number generators to determine their payout. There are no patterns to decipher. There is only a little microchip, churning out arbitrary digits.
At this point, our dopamine neurons should just turn themselves off: the slot machine is a waste of mental energy. But this isn't what happens. Instead of getting bored by the haphazard payouts, our dopamine neurons become obsessed. The random rewards of gambling are much more seductive than a more predictable reward cycle. When we pull the lever and win some money, we experience a potent rush of pleasurable dopamine precisely because the reward was so unexpected. The clanging coins and flashing lights are like a surprising squirt of juice. The end result is that we are transfixed by the slot machine, riveted by the fickle nature of its payouts.”
Source: http://archive.boston.com/news/globe/ideas/articles/2007/08/19/your_brain_on_gambling/
Dopamine is a chemical in your brain that releases during pleasurable situations. When it releases it makes you feel good. It’s known as the reward chemical. When you get likes on your status, when you beat a game on the hardest difficulty, when you pass an exam, when you finish creating something. You feel satisfied. Dopamine is released.
Dopamine is also released when you win at gambling. Here’s a quick study on your brain on slot machines. This study is based on an experiment giving juice to monkeys, and compares it to gambling.
“At first, the neurons don't get excited until the juice is delivered. The cells are reacting to the actual reward. However, once the animal learns that the light always precedes the arrival of juice, the same neurons begin firing at the sight of the light instead of the reward. Schultz calls these cells "prediction neurons," since they are more interested in predicting rewards than in the rewards themselves.
These predictions are a crucial source of learning, since the monkey constantly compares its expectations of juice with what actually happens. For example, if the light is flashed but the juice never arrives, then the monkey's dopamine neurons stop firing. This is known as the "error signal." The monkey is disappointed, and begins to change its future predictions. However, if the monkey receives an unexpected reward -- the juice arrives without warning -- then the dopamine neurons get extremely excited. A surprising treat registers much larger than an expected one.
"A reward that's unpredictable typically counts three or four times as much," Schultz says.
Games of chance prey on this neural system. Consider, for example, the slot machine. You put in a coin and pull the lever. The reels start to whirr. Eventually, the machine settles on its verdict. Chances are you lost money.
But think about the slot machine from the perspective of your dopamine neurons. Whenever you win some money, the reward activates those brain cells intent on anticipating future rewards. These neurons want to predict the patterns inside the machine, to decode the logic of luck.
Yet here's the catch: slot machines can't be solved. They use random number generators to determine their payout. There are no patterns to decipher. There is only a little microchip, churning out arbitrary digits.
At this point, our dopamine neurons should just turn themselves off: the slot machine is a waste of mental energy. But this isn't what happens. Instead of getting bored by the haphazard payouts, our dopamine neurons become obsessed. The random rewards of gambling are much more seductive than a more predictable reward cycle. When we pull the lever and win some money, we experience a potent rush of pleasurable dopamine precisely because the reward was so unexpected. The clanging coins and flashing lights are like a surprising squirt of juice. The end result is that we are transfixed by the slot machine, riveted by the fickle nature of its payouts.”
Source: http://archive.boston.com/news/globe/ideas/articles/2007/08/19/your_brain_on_gambling/
This could very well be the exact reason why it’s such a buzz to try and win a toy rather than straight up buy it where you know you’re guaranteed to get the item. This could be the same reason why people are much more inclined to buying loot boxes for certain cosmetics rather than straight up buying cosmetics like you could before this loot box phenomenon hit gaming.
I believe pack/loot box openings have the same effects as slot machines. Although this is just opinion, I really think psychologists should research the effect pack openings have on the brain and compare them to slot machine gambling.
These effects on the brain and same feelings you get in real life gambling, are very relatable with video game loot boxes/pack openings. Once you get invested into their system on a game you enjoy, it takes genuine willpower to resist not spending money, the same kind of willpower to resist not putting on another bet.
I believe pack/loot box openings have the same effects as slot machines. Although this is just opinion, I really think psychologists should research the effect pack openings have on the brain and compare them to slot machine gambling.
These effects on the brain and same feelings you get in real life gambling, are very relatable with video game loot boxes/pack openings. Once you get invested into their system on a game you enjoy, it takes genuine willpower to resist not spending money, the same kind of willpower to resist not putting on another bet.