“Free-To-Play” Video Games More Akin to Gambling, Research Suggests

The fun in video games used to be in mastering and finishing them. However, the definition of fun in the gaming world has changed from skills to ‘skins’—custom designs and wearables inside a game that can be purchased with money. Many of the modern games are also “free-to-play”, but there is an option to buy in-game products using real money, called microtransactions. For a business model that is based on enjoying a game for free, modern games are carefully designed to make such spending feel urgent and natural.

Microtransactions aren’t Small

The term “microtransactions” dilutes its effect on revenue generation. A single purchase can cost over a hundred dollars, which is anything but a small expense for a child or teenager. Sometimes, better in-game characters are kept behind a paywall. Now think of a player who faces this character in-game and fears missing out on it. This sense of urgency, the appeal of better statistics, and shiny costumes and skins for the character make it difficult to resist a purchase.

While many players spend money on in-game products, the issue takes a dark turn when a detailed probe is made. In 2018, more than two-thirds of the revenue in the mobile gaming sector was generated by 5.5% of the players. Such heavy spenders— players who spend disproportionately large amounts of money- are called ‘whales’, a term borrowed from the gambling industry. These ‘whales’ hold high value for the providers, and as studies suggest, free-to-play games have a younger user base. In other words, the gaming industry is exposing the youth to a form of gambling (more on this in the next section), and there are practically no laws strong enough to eradicate the problem currently.

The Loot Box Roulette

Loot boxes usually have a rarity system— rarer items drop less often, and when the lootboxes are bought, the players don’t know what they might acquire from them. The thrill of uncertainty and hope of receiving a desired item has led researchers to draw parallels with gambling. The constant loop of “better than the last” makes players spend without a second thought.

Often, gaming and gambling disorders appear in heavy spenders, encouraging addictive behaviors. The results also show that heavy spending wasn’t confined to teenagers from wealthy households. In fact, cases of kids emptying thousands of dollars from their parents’ bank accounts.

However, chance-based rewards make only a part of the free-to-play economy. Battle passes that give better-looking ‘skins’, paid items that allow players to level up faster, time-limited events, and personalized offers like discounts for returning players.

What Regulations are in Place?

While the Digital Services Act provides some regulation in the European Union, there is no proper regulation on loot boxes in the United States. The Netherlands plans to completely ban loot boxes, while the Gambling Commission of Belgium classified loot boxes as a form of gambling.

Three court rulings in Austria have already gone against providers of loot boxes, after several consumer lawsuits were filed. The backlash and legal attention have led to the removal of loot boxes from popular video games like Brawl Stars and Overwatch 2.

What can be done in the Meantime?

Spending in games is optional, but the visuals hardly leave room for a choice. Parents and caregivers must be in control of how much money is made accessible to children. Most young people never experience serious problems and play video games competently, but that does not make the monetization system any less manipulative.

Parents can keep a check by making sure that their kids have no access to their bank accounts all by themselves, and have a layer of biometric protection before any transactions can be made. Parental controls must be used to block unauthorized purchase attempts. Management tools like Google Family Link can help in the process.