The Psychology of Loot Boxes

Loot boxes are a persuasive example of how the gaming industry has focused on identifying player motivations and idiosyncratic preferences and then leveraged them into innovative monetization schemes, including those that pose a risk for those vulnerable to gambling-like behavior.

Loot boxes evade gambling laws in most countries as paying real money to win online goods is not viewed as a form of monetary exchange (Rose, 2006). This leaves loot boxes and similar predatory game mechanics to be unregulated, which may expose vulnerable and/or at-risk populations.

Dangers of loot boxes

Although the gaming industry claims that loot boxes are unproblematic, non-gambling activities, this claim is refuted by the evidence. Recent research by the GambleAware charity found “there is robust evidence that loot boxes are structurally and psychologically akin to gambling, with associations strongest amongst younger players.” (Close & Lloyd, 2021).

The research, carried out by the University of Wolverhampton and the University of Plymouth in the UK, found that:

93% of children regularly play games and 25-40% of them have made a loot box purchase

Around 5% of loot box purchasers spend more than around $100 per month (or the local equivalent)

Almost one third of these top 5% of spenders fall into the “problem gambler” category

12 out of 13 studies on the topic have established “unambiguous” connections to problem gambling behaviour

The higher the level of involvement in loot boxes, the higher the score on a measure of problem gambling symptomatology

The research concludes that “any risks and dangers associated with loot boxes are liable to affect specific demographics. Those particularly affected include males and younger gamers” and “those with lower educational attainment and lower levels of employment may be disproportionately affected.”

FIFA loot boxes

FIFA’s Ultimate Team is the most popular feature within the Electronic Arts FIFA video game. Fundamental to the game is the purchase of loot boxes. Gamers unlock random players to successfully build their team. The more packs opened, the higher probability of assembling a strong, all-star team to compete against others and win. Players can earn packs in-game or purchase them with real money.

This type of loot box is called “pay to win”. Items obtained provide an advantage when playing the game itself. The intrapersonal personality trait of competitiveness is a well-researched factor in gambling. Research shows that not only are more competitive individuals more likely to engage in gambling, but competitiveness is also a known risk factor for problem gambling. (Mowen et al., 2009; Parke et al., 2009).

This ties directly into loot box rewards, as these rewards may provide a competitive advantage and potentially strengthen the relationship between problem gambling, loot box spending and video game addiction. This is compounded by the effects of allowing pay to win, which may add additional value to loot box contents, further amplifying the effects of problem gambling. (Zendle et al., 2020).

Gaming Disorder Clinical Training

Given the concern “that gambling is now part of everyday life for children and young people” through video games (BBC News, 2021), understanding these predatory tactics will increase effectiveness at safeguarding the psychological and financial well-being of gamers.

Clinicians need to be equipped to deal with problematic gaming behavior when clients present with internet gaming disorder symptoms. Get started today by registering for INTENTA’s Gaming Disorder Clinical Training.