Loot boxes; prevention and reducing harm; AARP gambling tips

savvy

• The improvement in graphics
• The multiple forms of deliverable content
• The integration between gaming and film as with the phenomenon of the new Star Wars movie, as well as a new Star Wars video game which came into the marketplace, titled Battlefront II.

• After earning a certain amount of experience or in-game currency.
• Or after paying real world money.

• In some cases, this box (or crate) might contain cosmetic items that only make a weapon or item look ‘cooler’.
• In other cases, loot boxes are directly integrated into the gameplay experience, are unavoidable and perhaps the only way to progress through the game.
• It is a bit like opening a mystery box. You might get something cool or you might get a bunch of junk.

• Loot boxes allow players the ability to use real money to buy the chance to win prizes for in-game playing (gambling).
• This randomized component introduced into a game that is widely skill-based (gaming), is muddying the waters between gaming and gambling.

• The buying of loot boxes appears to be gambling because players (often adolescents) are being asked to buy something of monetary value that could wind up being of lower financial value than the amount paid.
• A key question in the determination of whether loot boxes are gambling is whether in-game items acquired within a game of chance can be considered of value. (e.g. a cosmetic item to make a weapon look ‘cooler’)
• Thus, most legal experts agree that winning cosmetic items, for example, qualifies as gambling; and does not need to specifically involve only money or real currency.

• Consideration, which means you have to pay something to play.
• Chance, which means there is something outside of a player’s control that determines the outcome of the game.
• And a prize which is something or anything of value.”

• When ‘taking a chance’, the participant may get a sense of satisfaction if he/she wins; anddisappointment with a loss.
• But there is always the chance for a win next time!
• It is similar to purchasing Pokemon cards – spending money on randomized card packs on the off chance you might get something valuable.

• A consideration about the prize: Is there is a secondary market where the contents of loot boxes can be cashed out or exchanged?
• To that end, over the years a myriad of third party websites have appeared where players can gamble, barter, buy, or sell the digital items for other digital items or, in some cases, real currency.
• With these websites, the item of value is no longer confined to the game itself; rather, they can now exist within a third-party marketplace where supply and demand dictates a real-world currency value equivalent.
• Any marketing strategy using psychology to reward players and encourage them to spend more on the game may be characterized as a predatory practice and should be reviewed further.

• Free to play developers are using push notifications, in-game notifications, special events and the like to draw attention to the product, which is, more often than not, at the end of a chain of real and in-game currencies.
• Do these techniques encourage compulsive and addictive behaviors as a byproduct (an unintentional but avoidable side effect) of trying to make their product more appealing to players?

• It is set up as an intermittent reward system, like a slot machine. You believe the next loot box you open will be the lucky one.
• While video games are typically thought of as skill-based, the EA Battlefront Star Wars game has random prizes generated by loot box reward systems.
• The gambling element takes the game out of a pure skill category.

• Game makers now use psychological tricks to drive people toward acquiring and opening loot boxes.
• Similar tricks have been used by casinos and gaming machines to keep people playing.
• The opening of the loot box, the sirens, the noises, the way it slowly opens are all designed to stimulate your senses.
• They are made to dazzle, delight and encourage repeat purchases. Further, game makers have access to much more information about the player then traditional casino style machines.
• They know demographics of player, social interactions, data and habits. As a player keeps improving their level of achievement in the game, at a deeper brain level, this releases dopamine. This addictive cycle fuels learning and behavior. It perpetuates ongoing gameplay.
• So what makes loot boxes addictive for the player is the preoccupation with the entire gaming and gambling experience and sense of immediate gratification that could develop into gambling habits.

skills

• Future research must examine the role gaming plays, plus its connection with gambling.
• Game makers must be required to reveal the win rate of loot boxes, to give players more knowledge about what they are playing for.
• Through legislation, the gaming industry should have restrictions on gambling-like mechanics in games that are marketable to youth and adolescents.
• The ratings agency governing gaming could place an 18+ rating with a message on any games which “contains gambling-like themes.”

• Youth display the typical responses adults have to gambling in these situations: anger, disappointment, and the urge to spend again- without any of the impulse control andawareness most adults have.
• When gambling themes and mechanics are introduced at an early age, this can lead to normalization of spending and miscalculation of risk and reward.
• This may lead to excessive time spent on games or money spent within the games themselves.
• Additionally, youth can develop chasing behavior. They often lack the necessary judgment and self-control since those features typically develop last in the brain, often not complete until age 25.
• These in-game ‘micro-transactions’ are reinforcing youth needs for instant gratification. It can groom them for future tendencies towards problem gambling.

• Their main concern is whether there is a product out there that could present a risk to their children.
• If an activity meets the gambling test, we want to insure children are protected.
• If it does not meet the test but could cause harm to children, parents will expect proper protections to be put in place by those who create, sell and regulate the products.
• When the marketing, mechanics, and concepts all contain elements of gambling-like mechanisms within video games, this becomes a concern for youth

soul

• Go to a casino expecting to have fun, not to win. The odds are against you. So short of being extremely lucky, the only way to leave a casino with a small fortune is to arrive with a
  large fortune.
• Leave the ATM and credit cards at home, and bring just the amount of money you are comfortable losing.
• Slot machines are like “electronic crack” to beginners because they are so easy to play. But they have the worst odds. If you can’t resist the slots, play machines near the entrance or other high-traffic areas – casinos set these machines to pay more often, to draw in passersby.
• Roulette is a bad bet. If you must play roulette, look for a wheel with only one zero on it – you have a better chance of winning (not great, but better).
• Learn to play craps. The game looks intimidating because there is so much going on. Nevertheless it can be exciting. There is even one bet where the casino has no advantage of taking your money – the only time this happens in a casino.