Non-UK Casinos have become more popular recently as punters try to escape the excessive regulations in the UK sector. After pressure from social groups and government, the UK Gambling Commission have taken a more active role in the betting industry. One area that escapes their gaze is that of the video gaming scene.
Just as there has been a rise in online casinos, so too, have we seen growth in UK online gaming. The payments model has also changed, from a one-off purchase of a physical cartridge or DVD to a multi-buy online model where users can buy in-game items, or boxes with secret rewards. Do these types of activities simply allow them to be a non-Licensed casino?
What are Loot Boxes?
In-game purchases in online video games has brought more opportunities for gamers to spend money during the gaming experience. Players can purchase upgrades, such as costumes, faster vehicles, and bigger weapons. These items can be purchased outright, but users can also find them by buying crates, which hold secret rewards. These crates are cheaper than buying some of the more in-demand items and there is an element of chance involved.
Games such as Fortnite have exploded in popularity with young gamers and Fortnite skins are an example of in-game upgrades. There are even rumours of loot boxes being added to future WWE games arising after the cancellation of WWE2k21. The problem with these in-game items is that players are usually teenagers, and there is an element of social pressure to have the latest upgrades when they are playing online together.
The products can be costly, but they also open up the same psychological issues as casinos, where those who are on a losing run might purchase more crates. The pricing of these items is also not in dollars or pounds, but in virtual currencies like V Bucks, so it removes some of the monetary anchoring.
How Buying Loot Boxes is Like Playing at Casinos Without GamStop
The purchase of loot boxes uses similar reward mechanisms as those used in non-UK casinos and the same psychological tools are used to entice buyers. Buying loot boxes with unknown contents is no different from a spin on a casino reel as users are hoping to strike it lucky with a valuable item. The loot box items can even be sold in third-party marketplaces, such as the Steam community, so there is also a financial benefit from lucky boxes.
The GamStop scheme was introduced in the UK to control problem gambling, with punters able to exclude themselves from sports betting and casino sites. Gaming upgrades and loot boxes are just as addictive and there has been evidence of parents whose child has racked up large sums of in-game purchases on their account. Some of the users are too young to understand the implications. There is no exclusion scheme available for this sector, unlike in the casino sector.
E-Sports Gambling and In-Game Items Currencies
Another grey area for gambling is in the booming e-sports scene, which has become common at online casinos. Some sites, such as CSGO BetsYOLO have allowed UK gamblers to exploit a loophole around the GamStop rules by betting on events using tradeable items, rather than real currency.
The end result is the same with punters making bets on the result of a match and is another means of gambling without having to adhere to GamStop self-exclusion. Cryptocurrencies are another means of payment for in-game purchases and the Decentraland virtual world is setting up an online casino within their virtual role player world. There is no gaming authority in the virtual world and no third-party resolution or self-exclusion in these types of schemes.
Gambling in the UK vs Non-UK Casinos
Online casinos not on GamStop are really offering the same service as gaming sites that offer in-game purchases. Players are attracted to graphics and playability, while the loot box rewards system and the ability to shift tradeable items around on third-party markets is very similar to using cash for gambling.
UK punters have become more drawn the list of casinos not on GamStop because the UK industry has become more heavily regulated. Alongside the GamStop rules, punters have seen restrictions on bet sizes and in-play rules, such as spin timers. These rules can be of benefit for problem gamblers, but for those who are more comfortable with their gambling habits, they are being punished in a one-size fits all approach.
Non GamStop sites are simply casinos and sports betting sites that do not have to follow the UKGC regulations. Some may view them as a loophole to avoid GamStop rules, but the video gaming industry is an environment without any regulations and the use of loot boxes is really just exploiting the same psychologies. This was not the intended consequence when creating these in-game rewards, but players should know the risks and avoid these games if they are signed up to GamStop.
Conclusion
Video games are viewed as a harmless hobby compared to casinos, but there are growing similarities in their environments. Loot box reward systems and in-game currencies have the potential to cause trouble for gamblers that have had to sign up for the GamStop system. The UKGC clamped down on the UK betting industry for a reason and many players are suffering the consequences of the tightening regulations, even when they are comfortable with their betting habits. It’s possible that some form of clamp down will happen in the gaming world, but it is hard to enforce when companies and games are being setup in multiple jurisdictions around the world. It could be argued that the video gaming industry is now acting as unregulated casino world and users should be careful about their use. Gamblers who have used the GamStop service should be aware of the risks that these games can bring and not see it as a loophole to bend the exclusion rules.
