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Emerging concerns on hidden perils of skins gambling

Lea Hogg February 4, 2024

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Emerging concerns on hidden perils of skins gambling

According to a report today by The Guardian, the world of video gaming is being infiltrated by a new form of gambling that targets young people.

This form of gambling, known as “skins gambling,” is causing concern among experts who believe it could be “rotting young people’s brains.”

Dark side of skins gambling

In-game purchases have been a part of the gaming industry for some time. These purchases, often in the form of bonus items or enhancements, have provided a steady stream of revenue for game developers. However, the Guardian report highlights a worrying trend where gamers are being enticed into casino-style betting to win these items.

The report cites the example of Jeff, a professional gamer with a large following on YouTube. Jeff, who is highly skilled at the popular game Counter-Strike: Global Offensive (CS:GO), was offered a lucrative deal by a company to advertise their products on his channel. However, instead of accepting the offer, Jeff decided to expose the shady business behind it: skins gambling.

Lack of regulation

“Skins” are virtual items within a game that can be purchased with real money or won as rewards during gameplay. They can range from powerful weapons to stylish outfits for characters. While skins can be found in loot boxes, they can also be bought and sold in the online marketplace operated by the gaming platform Steam.

What concerns Jeff, and many others, is not the skins themselves, but the gambling phenomenon they have spawned. Skins gambling operates like any other casino, with players staking money, watching the graphics spin, and either winning or losing.

However, unlike traditional casinos, these online platforms often lack a gambling licence and have no reliable mechanism to prevent underage gambling. This has led to fears that young people are getting their first taste of gambling through an online ecosystem that is largely unknown to their parents.

In the world of skins gambling, players can stake cash, cryptocurrency, or even other skins for the chance of winning a skin of high value. However, unlike traditional gambling, players cannot win any money directly.

Closer look at the impact of gambling elements in video games

Concerns that are being brought to the forefront are not unfounded, as several other reports have highlighted the potential dangers and impact of this trend.

The Guardian, in another report titled ‘No way out: how video games use tricks from gambling to attract big spenders,’ discusses how video games are employing tactics similar to those used in gambling that entice players into excessive spending. This strategy, while profitable for gaming companies, raises questions about the ethical implications and the potential harm it could cause to players.

Adding to this, a study from the University of York titled ‘Links between video games and gambling run deeper than previously thought’ suggests that certain practices in video games, such as token wagering, real-money gaming, and social casino spending, are significantly linked to problem gambling. This finding reflects the need for more stringent regulations and safeguards to be put into place.

Another report by ‘The Conversation’ also explores the issue: ‘Gambling: ‘loot boxes’ in video games could be conditioning children.’ The report highlights an alarming rise in problem gambling among children and its link to loot boxes in video games. The findings of the study are particularly concerning as they indicate that children are being exposed to gambling at a young age, potentially leading to serious problems down the line.

Lastly, the Australian Institute of Family Studies, in its report ‘What is the link between video gaming and gambling?’, found a link between playing simulated gambling games during adolescence and real money gambling in young adulthood. This finding further focuses on the potential long-term impacts of gambling elements in video games.

These reports collectively provide a comprehensive overview of the issue, highlighting the need for further research and regulation in this area.

Solutons to be considered

The first step towards addressing this issue lies in the hands of governments and regulatory bodies. They could introduce stricter regulations for video games that feature gambling elements. This could encompass a range of measures, from age restrictions and spending limits to mandatory warnings about the risks of gambling.

However, regulation alone is not enough. The gaming industry itself needs to take responsibility. Game developers can be more transparent about the odds of winning items in loot boxes. This would allow players to make more informed decisions about their in-game purchases.

Education also plays a crucial role in tackling this issue. Raising awareness about the risks of gambling in video games is essential. This could involve educational campaigns targeted at players, parents, and educators, helping them understand the potential dangers and how to avoid them.

Support services are another important aspect. Players who may be struggling with skins gambling addiction need access to support, which could include helplines, counselling services, and self-exclusion schemes.

Further research is needed to fully understand the impact of gambling in video games and to develop effective strategies for addressing this issue. This is a complex problem that requires a comprehensive, multi-faceted approach.

In conclusion, while video games can be a source of fun and relaxation, they can also lead to serious problems if not used responsibly. As with all forms of entertainment, moderation is key. It’s a collective effort that requires the involvement of game developers, players, parents, educators, researchers, and policymakers to ensure a safe and enjoyable gaming environment for all.

The Guardian’s report published today powerfully brings to light the lurking perils within of skins gambling, serving as a sobering wake-up call for more research and safety measures to be adopted.

As the gaming industry continues to evolve, the need for action is crucial for safeguards to be established to protect young gamers from the risks associated with gambling.

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