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Loot boxes potentially groom young people for gambling

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New research funded by the NSW Government’s Responsible Gambling Fund, shows young adults are more likely to gamble if exposed to in-game purchases and loot boxes in video games.

Director of the Office of Responsible Gambling, Natalie Wright, said video game loot boxes are virtual games of chance that offer players a randomised reward when opened.

“Loot boxes can resemble gambling since players invest time and sometimes money in obtaining them, then receive a random reward of uncertain value such as weapons or outfits for their characters,” Ms Wright said.

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“They are a growing concern because of the risk and reward elements associated with them that is similar to gambling and there are currently no age limits to play these games.”

The study by Central Queensland University (CQU), surveyed adolescents about their gaming experiences. Some of their key findings showed 62 per cent of the games they looked at offered loot boxes, and about a third of respondents had purchased a loot box in the last 12 months.

Additionally, the median monthly expenditure on loot boxes for adolescents aged 12 to 17 was $50 and $72 for young adults aged 18 to 24 years.

Overall the CQU research report found:

  • Loot boxes are common in the best-selling video games – the research report looked at 82 best-selling video games and revealed 62 per cent (51) had loot boxes.
  • In the survey sample, almost all of the respondents played at least one video game with loot boxes within the last 12 months (93 per cent).
  • Compared to other purchasers, young adults, aged 18 to 24 years old, who had recently purchased loot boxes for the first time, were more likely to have gambling problems. However, there was no evidence that earlier experiences with loot boxes predict later gambling problems.
  • Young people who had either opened, bought or sold loot boxes within the last 12 months were also more likely to have:
  • gambled in the last 12 months (young adults)
  • gambled more frequently (young adults)
  • spent more money gambling (young adults)
  • suffered more gambling problems (adolescents and young adults)
  • suffered more gambling-related harm (young adults), and
  • endorsed more positive attitudes towards gambling (adolescents  and young adults).

To view a copy of the report, please visit the Office of Responsible Gambling website.

For those needing help with gambling issues, help is available 24/7 on 1800 858 888 or through www.gamblinghelp.nsw.gov.au.

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Australia

VGCCC Appoints Suzy Neilan as its New CEO

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The Victorian Gambling and Casino Control Commission (VGCCC) has appointed Ms Suzy Neilan, a highly experienced leader with nearly 20 years of senior executive expertise in both public and private sectors, as its new CEO.

Ms Neilan brings significant senior leadership experience in regulation, transformation and customer service, and a track record delivering large scale technology and legislative change programs in highly regulated settings.

Ms Neilan is the Executive Director, Strategy at the Environment Protection Authority Victoria (EPA), having held the position for over 3.5 years, including periods of Acting CEO. Prior to her current role, Ms Neilan had an extensive career in leadership and regulation positions within and with the Victorian public sector, as Executive Director, Service Delivery at the Victorian Building Authority, and General Manager, Infringement Management Enforcement Services at Tenix Solutions, managing the outsourced systems and services contract for the former Department of Justice.

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VGCCC Chair, Mr Chris O’Neill, said Ms Neilan would bring to bear many years of contributions to Australian communities and public sector accomplishments to the VGCCC.

“As the VGCCC enters the next phase of the program of transformation we began three years ago, Suzy’s experience leading digital and technology transformation, and her deep understanding of education, enforcement and compliance will continue to ensure the Commission is well placed to meet future challenges and ensure the integrity, safety and fairness of the gambling industry.

“Suzy’s commitment to achieving regulatory outcomes that benefit Victorians makes her a strong leader to support the Commission and head the agency’s executive leadership team.”

Mr O’Neill thanked Ms Annette Kimmitt AM for her leadership over the last three years, remarking that her stewardship of the VGCCC since taking up the inaugural CEO position in 2022 had been instrumental in the regulator’s evolution.

“Annette’s holistic vision and tenacious drive led the Commission’s transformation in its first years and with strategic focus, determined how we would work with the industry to ensure that our mandate to regulate in the public interest would be met.

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“On behalf of all at the VGCCC, I thank Annette for her exemplary service and dedication, and we wish her all the best for the future.”

Ms Neilan said she was looking forward to being part of the Commission’s continued evolution.

“I am excited by the opportunity to contribute to the VGCCC’s success and look forward to working with the dedicated and talented people at the VGCCC to make a positive difference for Victorian communities,” she said.

Ms Neilan will commence as CEO on 1 April 2025.

The post VGCCC Appoints Suzy Neilan as its New CEO appeared first on European Gaming Industry News.

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Australia

Foxtel Breaches Gambling Ad Rules

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Foxtel Cable Television Pty Limited has breached gambling advertising rules during the broadcast of an AFL match between Port Adelaide and Essendon in April 2024.

An Australian Communications and Media Authority (ACMA) investigation found a virtual banner promoting a gambling operator that appeared during Foxtel’s coverage of the match failed to include an adequate responsible gambling message.

Under the subscription television code of practice, gambling advertisements, including banner ads, shown during broadcasts of live sport must be accompanied by a responsible gambling message.

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Authority member Carolyn Lidgerwood said if broadcasters are airing gambling advertisements during live sporting events, the responsible gambling message must be aired too.

“These messages must emphasise the potential harms and risks of gambling if it is not undertaken responsibly,” Ms Lidgerwood said.

“An ‘18+’ logo on its own is not an adequate responsible gambling message.”

Once the ACMA raised its concerns with Foxtel, the broadcaster acted quickly to ensure a responsible gambling tagline was added to the advertisement.

As a result of the ACMA’s investigation Foxtel has agreed to further staff training on the regulatory requirements around gambling advertisements. Foxtel will also report back to the ACMA on all the steps it is taking to ensure the gambling ads it broadcasts have sufficient responsible gambling messages.

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Australia

VGCCC Continues Crackdown on Underage Gambling

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Following the successful prosecution of the Peninsula Club in Dromana, Victorian Gambling and Casino Control Commission (VGCCC) CEO Annette Kimmitt AM reiterated the regulator would continue to crack down on venues that allow children to enter poker machine areas.

The Magistrates’ Court of Victoria fined Victorian Amateur Turf Club, the venue owner, $7000 for 2 breaches of the Gambling Regulation Act 2003 (Vic) and ordered it to pay VGCCC costs of $3500. No conviction was recorded.

Ms Kimmitt said: “This is a warning to every venue. The onus is on you to ensure that children cannot and do not enter the gambling area or participate in any gambling activity, even if they’re with an adult.

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“Equally, staff must be adequately trained and present in the gambling area to supervise while machines are in use.

“Research tells us that people who begin gambling at a young age are at greater risk of developing gambling problems as an adult.

“The rules exist to protect children from exposure to, and harm from, gambling.”

On 10 June 2023, a child entered the gambling area of the Peninsula Club twice and was able to use the poker machines on both occasions. During the second visit to the area, while with adults, the child used a poker machine for about 5 minutes, until staff intervened.

Magistrate Ayres considered the venue’s self-reporting, its lack of prior convictions, early plea and remediations implemented to reduce the chance of future offending.

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