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The UK government recently published a review of skins gambling. Skins gambling involves the betting of virtual items (skins) obtained in online video games.
It is becoming increasingly popular and has raised concerns regarding its potential risks and harms. One key reason for these concerns is the design of skins gambling and its association with video game loot boxes, which often attract younger players. Young people, who are generally more susceptible to gambling-related harm, may be drawn into underage gambling behaviours through video gaming, potentially serving as a gateway to gambling.
Given the anonymity afforded by the platforms offering skins gambling, the absence of age verification at the point of use, and the fact these activities are largely unregulated, makes them easily accessible to individuals, particularly children and young people, regardless of laws and regulations in specific jurisdictions. This lack of regulation, the absence of acceptable responsible gambling standards on the platforms, and the potential for increased exposure, could lead to gambling-related harm that includes the development of unhealthy gambling behaviours at a young age.
The report considered the following key questions:
- How does skins gambling compare to traditional forms of gambling in terms of game design, participation, demographics, and impact on gambling-related harm?
- What are the risks of participating in skins gambling for vulnerable groups, especially children and young people?
- How accessible is skins gambling compared to regulated gambling, and through which platforms is it primarily offered?
Findings of the report
The report calls for comprehensive regulation and policy reform regarding skins gambling. A clear pattern has emerged from the research. The convergence of video game playing and gambling is increasingly evident, with young people being particularly vulnerable to engaging in gambling-like activities through in-game items such as skins. The normalisation of these behaviours within video game communities, often amplified by influencers and content creators, further reinforces the risks faced by young players, many of whom are unaware that they are engaging in gambling practices.
The global regulatory landscape remains inconsistent, outdated, and frequently unenforceable. Most countries have yet to address skins gambling directly. Where regulation does exist, it often fails to consider the complex dynamics of digital asset ecosystems and gambling mechanics embedded within games. In particular, the lack of specific legislation to govern skins gambling leaves many players, especially minors, at risk of harm, as evidenced by the association between skins gambling and problem gambling behaviours, and problem gambling severity.
The report emphasises the need for legislative clarity and reform. The report says that the UK government, alongside international regulatory bodies, must recognise skins gambling as a distinct form of gambling, ensuring it falls under appropriate regulatory oversight. It also calls for game developers to implement age-based safeguards and monitor third-party misuse of in-game items, to prevent illegal gambling.
In the past, the UK government has rejected regulating loot boxes. It will be interesting to see if this report changes that viewpoint. The Online Safety Act already requires stricter age assurance, which may reduce access to gambling websites by children, although children can be expert in circumventing such barriers.
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