The Line Between Video Games and Online Casino Games is Blurring: Here’s Why

If you’ve ever played some of today’s most popular video games, a disturbing thought might have crossed your mind within minutes of playing: Is it just me, or does this game seem to feature many gambling elements? Turns out, it is indeed NOT just you: the lines between video games and online casino games are blurring, and both game types are starting to share similar design mechanics.

When it first came out, Star Wars Battlefront II used loot boxes as part of core gameplay, triggering widespread criticism and calls for tighter regulatory oversight. Skins obtained in Counter-Strike: Global Offensive through case openings are now worth real money and are often compared to the dopamine thrill one experiences when spinning the reels of a slot game. 

Additionally, similar to the Pokémon Trading Card Game, video games like NBA 2K and FIFA Ultimate Team offer the option to buy virtual packs (using either virtual currency or real money) featuring a selection of players, some of whom are extremely hard to obtain (i.e., the odds of pulling them are lower than 1%).

Why is this a problem? All of these games train and reward behaviors that are often associated with gambling. Children engaging with these types of video games may develop a dependence on dopamine thrill, which in turn makes them more prone to the danger of problem gambling and other addictive behaviors later on in their adult life.

But while the change in game mechanics is drastic, it didn’t come overnight and is the result of two decades of shifting business models and company strategies.

Why monetization is king

In the early days of gaming, the main way of making money from video games was to sell your games to players, who then had the rights to play the game for free forever. With the introduction and rapid adoption of mobile gaming, in which most titles were free to play and didn’t require a purchase, the business model shifted as companies were forced to seek new ways to generate revenue. 

Because statistically, only a small fraction of individuals are willing to pay in-game fees to gain extras, businesses were forced to develop engaging mechanics that ensured the same players end up spending money more than once. This is remarkably similar to the gambling industry, where the majority of revenue is generated by a small group of players spending significant amounts of money, most of whom tend to suffer from problem gambling tendencies rather than having high incomes.

However, the real blurring of lines between video and casino games came with the introduction of loot box mechanics, which enabled players to open a "loot box" in-game, inside of which a random cosmetic item awaited them. Those lucky enough would receive a highly exclusive and sought-after item with real-world value, as other players have been—and continue to be—willing to pay to own it in-game. Most players, however, obtain a regular item whose value isn't worth virtually anything.

While engaging with a loot box would often mean the player literally opens a box in-game, this action often takes the form of spinning a wheel or opening a virtual pack. In fact, loot box purchasing has been found to be positively correlated with problem gambling severity in more than a dozen recent empirical studies in Western countries, including Australasia, Denmark, Germany, and the US.

Research also suggests that both game types seem to share the same cognitive biases. This includes the gambler’s fallacy (e.g., players believing that if the real money slots USA offers haven’t paid in a while, the games are more likely to pay in the future) and chasing losses, both of which may lead to severe overspending.

Wrapping up

It's important to note that while both game types share several crucial characteristics, there are still notable differences between the two. Most video games still don't allow you to cash out your winnings, and the regulation surrounding the gambling industry tends to be much stricter overall.

While the amount of research about the intersection of the two industries is growing, studies have yet to determine whether a correlation between loot boxing in childhood and problem gambling in adulthood truly exists. However, the topic remains a focal point of discussion, so it’s likely only a matter of time before the first long-term-focused studies start to emerge.

In the meantime, it is important to pay close attention to your child and watch out for any behavioral signals that may suggest your child is showing signs of dependency. Discussion and transparency are crucial. Setting boundaries is important, but total bans might cause more trouble than they do good. Instead, consider setting time and spending limits, and establish rules on what's allowed and what's forbidden (e.g., no packs whatsoever).