Skip to main content
SpringerLink
Log in

Video Game Monetization (e.g., ‘Loot Boxes’): a Blueprint for Practical Social Responsibility Measures

  • Original Article
  • Published:
International Journal of Mental Health and Addiction Aims and scope Submit manuscript

Abstract

Video games are becoming increasingly monetized with the addition of in-game purchasing options, which has prompted some comparisons of these products to electronic gaming machines. The expansion and sophistication of ‘microtransaction’ options in online games (e.g., ‘loot boxes’) has also led to concerns about vulnerable users (e.g., adolescents) overspending on these schemes. Currently, there are limited regulatory and/or consumer protection frameworks for video game monetization schemes. This conceptual paper explores some potential social responsibility measures for monetized gaming products to stimulate further discussion and developments in this area. Loot boxes are a focus of this discussion given the current debate on their legality, i.e., similarity to electronic gambling machines. Drawing on social responsibility principles and research in the field of gambling studies, we outline some potential measures in the areas of: (1) game design and in-game purchasing system characteristics, (2) transparency and accuracy of game design and features, (3) broad consumer protection measures, and (4) consumer information and industry accountability. It is hoped that this paper will encourage further discussion among academics, regulators, and the industry. An empirical evidence base is needed to inform the design and implementation of countermeasures for monetization schemes that increase risk of gaming-related harm for some users.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Abarbanel, B. (2018). Gambling vs. gaming: a commentary on the role of regulatory, industry, and community stakeholders in the loot box debate. Gaming Law Review, 22, 231–234.

    Article  Google Scholar 

  • Activision. (2017). Terms of use. Available online: https://www.activision.com/legal/terms-of-use.

  • Auer, M., & Griffiths, M. D. (2013a). Behavioral tracking tools, regulation and corporate social responsibility in online gambling. Gaming Law Review and Economics, 17, 579–583.

    Article  Google Scholar 

  • Auer, M., & Griffiths, M. D. (2013b). Voluntary limit setting and player choice in most intense online gamblers: an empirical study of gambling behaviour. Journal of Gambling Studies, 29, 647–660.

    Article  PubMed  Google Scholar 

  • BBC News. (2018). Video game loot boxes declared illegal under Belgium gambling laws. Retrieved online from: http://www.bbc.com/news/technology-43906306.

  • Bernhard, B., Lucas, A., & Jang, D. (2006). Responsible gaming device research report. Las Vegas: University of Nevada.

    Google Scholar 

  • Blaszczynski, A. (2001). Harm minimization strategies in gambling: An overview of international initiatives and interventions. Melbourne: Australian Gaming Council.

    Google Scholar 

  • Blaszczynski, A., Ladouceur, R., & Shaffer, H. J. (2004). A science-based framework for responsible gambling: the Reno model. Journal of Gambling Studies, 20, 301–317.

    Article  PubMed  Google Scholar 

  • Blaszczynski, A., Wales, N. S., Ladouceur, A. R., Lia Nower, J. D., & Shaffer, H. J. (2005). Current issues informed choice and gambling: Principles for consumer protection. Melbourne: Australian Gaming Council.

    Google Scholar 

  • Blaszczynski, A., Collins, P., Fong, D., Ladouceur, R., Nower, L., Shaffer, H. J., Tavares, H., & Venisse, J. L. (2011). Responsible gambling: general principles and minimal requirements. Journal of Gambling Studies, 27, 565–573.

    Article  PubMed  Google Scholar 

  • Cialdini, R. (2009). Influence: Science and practice. Boston: Pearson Education.

    Google Scholar 

  • Civelek, I., Liu, Y., & Marston, S. R. (2018). Design of Free-to-Play Mobile Games for the competitive marketplace. International Journal of Electronic Commerce, 22, 258–288.

    Article  Google Scholar 

  • Cloutier, M., Ladouceur, R., & Sévigny, S. (2006). Responsible gambling tools: pop-up messages and pauses on video lottery terminals. The Journal of Psychology, 140, 434–438.

    Article  PubMed  Google Scholar 

  • Cunningham, J. A., Hodgins, D. C., & Toneatto, T. (2011). Pilot study of an internet-based personalized feedback intervention for problem gamblers. Journal of Gambling Issues, 26, 4–10.

    Article  Google Scholar 

  • Delfabbro, P. H., & King, D. L. (2012). Gambling in Australia: experiences, problems, research and policy. Addiction, 107, 1556–1561.

    Article  PubMed  Google Scholar 

  • Derevensky, J. L., & Gainsbury, S. M. (2016). Social casino gaming and adolescents: should we be concerned and is regulation in sight? International Journal of Law and Psychiatry, 44, 1–6.

    Article  PubMed  Google Scholar 

  • Dreier, M., Wölfling, K., Duven, E., Giralt, S., Beutel, M. E., & Müller, K. W. (2017). Free-to-play: about addicted whales, at risk dolphins and healthy minnows. Monetarization design and internet gaming disorder. Addictive Behaviors, 64, 328–333.

    Article  PubMed  CAS  Google Scholar 

  • Drummond, A., & Sauer, J. D. (2018). Video game loot boxes are psychologically akin to gambling. Nature Human Behaviour, 1, 530–532. https://doi.org/10.1038/s41562-018-0360-1.

    Article  Google Scholar 

  • Dussault, F., Brunelle, N., Kairouz, S., Rousseau, M., Leclerc, D., Tremblay, J., Cousineau, M. M., & Dufour, M. (2017). Transition from playing with simulated gambling games to gambling with real money: a longitudinal study in adolescence. International Gambling Studies, 17, 386–400.

    Article  Google Scholar 

  • Dwan, H. (2017). Hawaii to crack down on ‘predatory’ loot boxes in video games following star wars battlefront 2 controversy. Retrieved online on 30/4/2018 from: https://www.telegraph.co.uk/gaming/news/hawaii-crack-predatory-loot-boxes-video-games/.

  • Ernst, T. (2017). U.S. Patent No. 9,656,175: System and method for providing in-game pricing relative to player statistics. Washington, DC: U.S. Patent and Trademark Office.

    Google Scholar 

  • Focal Research. (2007). Assessment of the behavioural impact of responsible gaming device features (RGD): Analysis of Nova Scotia player-card data. Nova Scotia: Halifax.

    Google Scholar 

  • Gach, E. (2017). Meet the 19-year-old who spent over $17,000 on microtransactions [internet]. Available at: https://www.kotaku.com.au/2017/11/meet-the-19-year-old-who-spent-over-17000-on-microtransactions/.

  • Gainsbury, S. M. (2012). Internet gambling: Current research findings and implications. Springer Science & Business Media.

  • Gainsbury, S. M., Hing, N., Delfabbro, P., Dewar, G., & King, D. L. (2015). An exploratory study of interrelationships between social casino gaming, gambling, and problem gambling. International Journal of Mental Health and Addiction, 13, 136–153.

    Article  Google Scholar 

  • Gainsbury, S. M., King, D. L., Russell, A. M., & Delfabbro, P. (2016a). Who pays to play freemium games? The profiles and motivations of players who make purchases within social casino games. Journal of Behavioral Addictions, 5, 221–230.

    Article  PubMed  PubMed Central  Google Scholar 

  • Gainsbury, S. M., Russell, A. M., King, D. L., Delfabbro, P., & Hing, N. (2016b). Migration from social casino games to gambling: motivations and characteristics of gamers who gamble. Computers in Human Behavior, 63, 59–67.

    Article  Google Scholar 

  • Good, O. S. (2018). ESRB’s new ‘in-game purchases’ label, explained. Retrieved online from: https://www.polygon.com/2018/2/28/17059936/esrb-loor-crates-loot-boxes-label-in-game-purchases.

  • Grayson, N. (2017). Blizzard reveals Overwatch loot box odds in China. Retrieved online from: https://www.kotaku.com.au/2017/05/blizzard-reveals-overwatch-loot-box-odds-in-china/.

  • Griffiths, M. D. (2009). Minimizing harm from gambling: what is the gambling industry’s role? Addiction, 104, 696–697.

    Article  PubMed  Google Scholar 

  • Griffiths, M. D. (2018). Is the buying of loot boxes in video games a form of gambling or gaming? Gaming Law Review, 22, 52–54.

    Article  Google Scholar 

  • Griffiths, M. D., Wood, R. T., & Parke, J. (2009). Social responsibility tools in online gambling: a survey of attitudes and behavior among internet gamblers. Cyberpsychology & Behavior, 12, 413–421.

    Article  Google Scholar 

  • Haw, J., & Hing, N. (2011). Servicescape features and preferred gambling venue. Gambling Research, 23, 53–65.

    Google Scholar 

  • Hayer, T., & Meyer, G. (2011). Internet self-exclusion: characteristics of self-excluded gamblers and preliminary evidence for its effectiveness. International Journal of Mental Health and Addiction, 9, 296–307.

    Article  Google Scholar 

  • Hayer, T., Kalke, J., Meyer, G., & Brosowski, T. (2018). Do simulated gambling activities predict gambling with real money during adolescence? Empirical findings from a longitudinal study. Journal of Gambling Studies, 34, 929–947.

    Article  PubMed  Google Scholar 

  • Higuchi, S. (2017). Behavioral addictions: scientific update. Plenary session at the 19th Annual Conference of the International Society of Addiction Medicine (ISAM). Emirates Palace, Abu Dhabi.

  • Hing, N. (2001). Changing the odds: a study of corporate social principles and practices in addressing problem gambling. Journal of Business Ethics, 33, 115–144.

    Article  Google Scholar 

  • Hing, N. (2004). The efficacy of responsible gambling measures in NSW clubs: the gamblers’ perspective. Gambling Research, 16, 32–46.

    Google Scholar 

  • Hruska, J. (2018). The Netherlands declares some loot boxes illegal, warns developers to modify them. Retrieved online from: https://www.extremetech.com/extreme/267994-the-netherlands-declares-some-loot-boxes-illegal-warns-developers-to-modify-them.

  • Interactive Games and Entertainment Association (IGEA). (2018). IGEA submission – Gaming micro-transactions for chance-based items. Retrieved online 22/8/2018 from: https://igea.net/2018/07/igea-submission-gaming-micro-transactions-for-chance-based-items/.

  • Jacques, C., Fortin-Guichard, D., Bergeron, P. Y., Boudreault, C., Lévesque, D., & Giroux, I. (2016). Gambling content in Facebook games: a common phenomenon? Computers in Human Behavior, 57, 48–53.

    Article  Google Scholar 

  • King, D. L., & Delfabbro, P. H. (2018). Predatory monetization features (e.g., ‘loot boxes’) in video games and internet gaming disorder. Addiction, 110, 1967–1969. https://doi.org/10.1111/add.14286.

    Article  Google Scholar 

  • King, D. L., & Gaming Industry Response Consortium. (2018). Comment on the global gaming industry’s statement on ICD-11 gaming disorder: a corporate strategy to disregard harm and deflect social responsibility? Addiction, 113, 2145–2146. https://doi.org/10.1111/add.14388.

    Article  PubMed  Google Scholar 

  • King, D. L., Delfabbro, P. H., Derevensky, J. L., & Griffiths, M. D. (2012). A review of Australian classification practices for commercial video games featuring simulated gambling. International Gambling Studies, 12, 231–242.

    Article  Google Scholar 

  • King, D. L., Gainsbury, S. M., Delfabbro, P. H., Hing, N., & Abarbanel, B. (2015). Distinguishing between gaming and gambling activities in addiction research. Journal of Behavioral Addictions, 4, 215–220.

    Article  PubMed  PubMed Central  Google Scholar 

  • King, D. L., Russell, A., Gainsbury, S., Delfabbro, P. H., & Hing, N. (2016). The cost of virtual wins: an examination of gambling-related risks in youth who spend money on social casino games. Journal of Behavioral Addictions, 5, 401–409.

    Article  PubMed  PubMed Central  Google Scholar 

  • Kinnunen, J., Alha, K., & Paavilainen, J. (2016). Creating play money for free-to-play and gambling games. In Proceedings of the 20th International Academic Mindtrek Conference (pp. 385–392). ACM.

  • Koeder, M. J. & Tanaka, E. (2017). Game of chance elements in free-to-play mobile games. A freemium business model monetization tool in need of self-regulation? Paper presented at the 28th European Regional Conference of the International Telecommunications Society (ITS): “Competition and Regulation in the Information Age”, Passau

  • Ladouceur, R., Shaffer, P., Blaszczynski, A., & Shaffer, H. J. (2017). Responsible gambling: a synthesis of the empirical evidence. Addiction Research & Theory, 25, 225–235.

    Article  Google Scholar 

  • Macey, J., & Hamari, J. (2018a). eSports, skins and loot boxes: participants, practices, and problematic behaviour associated with emergent forms of gambling. New Media and Society, 146144481878621. https://doi.org/10.1177/1461444818786216.

  • Macey, J., & Hamari, J. (2018b). Investigating relationships between video gaming, spectating esports, and gambling. Computers in Human Behavior, 80, 344–353.

    Article  Google Scholar 

  • McClellan, S., Pieron, L., Swift, D., & Schultz, S. (2017). U.S. patent no. 9,744,446: Mystery boxes that adjust due to past spending behavior. Washington, DC: U.S. Patent and Trademark Office.

    Google Scholar 

  • Microsoft. (2017). Windows 10 health gaming guide. Retrieved online: https://support.xbox.com/en-AU/xbox-on-windows/family-safety-and-security/healthy-gaming-guide.

  • Monaghan, S. (2009). Responsible gambling strategies for internet gambling: the theoretical and empirical base of using pop-up messages to encourage self-awareness. Computers in Human Behavior, 25, 202–207.

    Article  Google Scholar 

  • Nelson, S. E., LaPlante, D. A., Peller, A. J., Schumann, A., LaBrie, R. A., & Shaffer, H. J. (2008). Real limits in the virtual world: self-limiting behavior of internet gamblers. Journal of Gambling Studies, 24, 463–477.

    Article  PubMed  Google Scholar 

  • Nettleton J., & Chong K. (2013). Online social games – The Australian position. Position paper available at: http://www.addisonslawyers.com.au/knowledge/assetdoc/1496179efe668027/Online%20Social%20Games%20-%20The%20Australian%20Position.pdf.

  • Nower, L., & Blaszczynski, A. (2010). Gambling motivations, money-limiting strategies, and precommitment preferences of problem versus non-problem gamblers. Journal of Gambling Studies, 26, 361–372.

    Article  PubMed  Google Scholar 

  • Office of the eSafety Commissioner. (2018). State of play – Youth and online gaming in Australia. Australian Government.

  • Orford, J. (2005). Disabling the public interest: Gambling strategies and policies for Britain. Addiction, 100, 1219–1225.

    Article  PubMed  Google Scholar 

  • Parent Zone. (2018). Skin gambling: Teenage Britain’s secret habit. UK: Parent Zone.

    Google Scholar 

  • Prochaska, J. O., DiClemente, C. C., & Norcross, J. C. (1992). In search of how people change: applications to addictive behaviors. American Psychologist, 47, 1102–1114.

    Article  PubMed  CAS  Google Scholar 

  • Schwiddessen, S., & Karius, P. (2018). Watch your loot boxes!–recent developments and legal assessment in selected key jurisdictions from a gambling law perspective. Interactive Entertainment Law Review, 1, 17–43.

    Article  Google Scholar 

  • Sévigny, S., Leclerc, M., Goulet, A., Côté, K., Jacques, C., Ladouceur, R., & Giroux, I. (2016). Electronic gambling machine gamblers’ characteristics vary according to the type of gambling venue: a Canadian study. International Gambling Studies, 16, 116–139.

    Article  Google Scholar 

  • Smeaton, M., & Griffiths, M. (2004). Internet gambling and social responsibility: an exploratory study. Cyberpsychology & Behavior, 7, 49–57.

    Article  Google Scholar 

  • Solana, J. (2018). Judge rules big fish casino illegal gambling under Washington law. Retrieved online from: https://calvinayre.com/2018/03/29/business/judge-rules-big-fish-casino-illegal-online-gambling-washington-law/.

  • Teichert, T., Gainsbury, S. M., & Mühlbach, C. (2017). Positioning of online gambling and gaming products from a consumer perspective: a blurring of perceived boundaries. Computers in Human Behavior, 75, 757–765.

    Article  Google Scholar 

  • UK Gambling Commission. (2017a). Virtual currencies, eSports, and social casino gambling – Position paper. Retrieved online 30/04/2018 from: http://www.gamblingcommission.gov.uk/PDF/Virtual-currencies-eSports-and-social-casino-gaming.pdf.

  • UK Gambling Commission. (2017b). Young people and gambling: A study among 11-16 year olds in Great Britain. Birmingham, United Kingdom. Retrieved online 30/7/2018 from: http://www.gamblingcommission.gov.uk/PDF/survey-data/Young-People-and-Gambling-2017-Report.pdf.

  • van Rooij, A. J., Meerkerk, G. J., Schoenmakers, T. M., Griffiths, M., & Van de Mheen, D. (2010). Video game addiction and social responsibility. Addiction Research & Theory, 18, 489–493.

    Article  Google Scholar 

  • Warren, K., Parush, A., Wohl, M., & Kim, H. S. (2014). Embedded disruption: Facilitating responsible gambling with persuasive systems design. In International Conference on Persuasive Technology (pp. 253–265). Springer, Cham.

  • Wohl, M. J., Salmon, M. M., Hollingshead, S. J., & Kim, H. S. (2017). An examination of the relationship between social casino gaming and gambling: the bad, the ugly, and the good. Journal of Gambling Issues, 35, 1–23. https://doi.org/10.4309/jgi.2017.35.1.

    Article  Google Scholar 

  • Xuan, Z., & Shaffer, H. (2009). How do gamblers end gambling: longitudinal analysis of internet gambling behaviors prior to account closure due to gambling related problems. Journal of Gambling Studies, 25, 239–252.

    Article  PubMed  Google Scholar 

Download references

Funding

This work received financial support from a Discovery Early Career Researcher Award (DECRA) DE170101198 funded by the Australian Research Council (ARC).

Author information

Authors and Affiliations

  1. School of Psychology, The University of Adelaide, Level 7, Hughes Building, Adelaide, SA, 5005, Australia

    Daniel L. King & Paul H. Delfabbro

Authors
  1. Daniel L. King
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Paul H. Delfabbro
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Daniel L. King.

Ethics declarations

This article does not contain any studies with human participants performed by any of the authors.

Conflict of Interests

Daniel King and Paul Delfabbro have not been involved in any research involving the marketing or refinement of gaming or gambling products for commercial operations.

Constraints on Publishing

No constraints on publishing were reported by the authors.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

King, D.L., Delfabbro, P.H. Video Game Monetization (e.g., ‘Loot Boxes’): a Blueprint for Practical Social Responsibility Measures. Int J Ment Health Addiction 17, 166–179 (2019). https://doi.org/10.1007/s11469-018-0009-3

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11469-018-0009-3

Keywords

Search

Navigation