Loot Boxes Causing Children To Fall Into Debt

According to research conducted by UK Royal Society for Public Health, one out of ten young gamers fall into debt because of their spending on loot boxes.

Online gaming is at an all-time high owing to the COVID-19 pandemic. With companies like Blizzard earning around $1 billion within the year, one wonders how such a figure is possible. The use of “Loot Boxes” has enabled companies to profit off children playing these games.

If you’re reading this as a parent, then you might want to check your account transactions after reading this article!

A new study conducted by the UK Royal Society for Public Health reports that one in ten young gamers will go into debt thanks to loot boxes. According to the research, around 15% of young gamers took unconsented money from their parents without permission to buy loot boxes.

Around 11% has used their parent’s credit or debit card to fund their loot box purchases. A similar 9% borrowed money they could not repay to spend on loot boxes.

Chair of the GHA and Deputy Chief Executive of RSPH, Duncan Stephenson, said,

“We know that many teenagers will be unwrapping video games for Christmas, and while we know they give a huge amount of enjoyment for many, we are concerned that games containing loot boxes are having an impact on the finances of young people.”

He further stated that “While this is a small survey of gamers, our research suggests that the drive to play games containing loot boxes is encouraging many to beg, borrow and steal – loot boxes really are the gift that keeps on taking.”

Duncan Stephenson

To emphasize the adverse financial impacts, the RSPH reported that three of the participants’ loot box purchasing habits resulted in their families re-mortgaging their homes to cover costs.

Besides the financial cost, the study also showed that gamers having a fixation with loot boxes suffered from addiction symptoms: mood swings, sleeping problems, and impact on their social life.

Parent Zone’s Executive Director, Geraldine Bedell, stated, “Parent Zone strongly backs the GHA’s call for loot boxes to be classified as gambling. Our research, like theirs, points to the exploitation of children by gambling-like mechanisms in online games, and the use of psychological techniques drawn from gambling. Risks are being taken with the future of young people, who are being taught to gamble.”

About Loot Boxes

Loot boxes are psychologically manipulative game mechanics that have become popular in recent years. These additives can be either bought through in-game currency but more so through real money. Loot boxes have become a cash cow for gaming studios, with many new games resorting to a “pay-to-win” formula: players can’t progress through the game levels without items won, and perks unlocked from loot boxes.