If you were to compare gaming stores today with those from ten years ago, the differences would be sobering. Sweeping changes and advancements have transformed what were once items of entertainment into complex machines filled with odds-based reward systems and microtransactions supporting a pay-to-win mentality. Microtransactions are now a common sight in many games, ranging from free-to-play to mainstream triple-A titles.
Microtransactions accounted for 58% of PC gaming revenue in 2024. With this much money being handled, the line between video games and gambling is growing hazy. Prize wheels in children’s games and loot boxes in triple-A titles—the mechanics currently driving the games industry mirror many gambling habits. Let’s take a closer look at how these systems overlap and where the limits lie.
How Gambling Mechanics Entered Gaming
When it comes to gambling mechanics in gaming, packs and loot boxes are the front runners for blame. Both are in-game items available for purchase and frequently contain randomised rewards with percentage-driven odds. The anticipation associated with opening these packs is the same addictive feeling as pulling the lever on slot machines.
There are more gambling mechanics present in games, including prize wheel spins, Japanese gacha systems and even streak-based rewards. They are all designed to create a need, an urge in the player to reach that next reward, because that could be the one that gives the player what they need.
Even when there is no real money involved, such as in kids’ games, gambling principles remain at the forefront of this design. These mechanics often also mirror the lights and the glamour of casinos, including flashing lights and sirens when you win. Anything to hit the sweet spot of frustration and excitement that keeps people playing the game.
The Ethical Debate of Mixing Gambling and Gaming
The fact that there are gambling mechanics in games is not the issue because, on many levels, it makes sense. Where the issue commonly lies is in who is being targeted by these mechanics.
Gambling is a heavily regulated practice, typically limited to those aged 18 and over, while video games are for everybody. Yes, there are age ratings, but let’s be honest, you don’t need to be that age to play them. Also, these mechanics can be found in kids’ games, exposing them to gambling concepts without the necessary restrictions.
The risk-versus-reward method of gaming is not created by chance. It is the product of research and consultations with behavioural psychologists to create something deliberate and addictive. The debate arises when a pre-teen child spends their pocket money on a game after being pulled in by something they do not understand and have no control over. Younger gamers are at risk of addiction at an age when they cannot understand the dangers.
The Need for Legal Restrictions
Many will argue that the gambling mechanics used in games need to be subjected to stricter regulations. However, there is a storm cloud of uncertainty surrounding this practice. Officially, there is nothing illegal about these practices, nor the habits they may form. The opinion of the UK’s Gambling Commission is that, because none of the items purchased or won in these games hold any real-world value, obtaining them is not technically gambling.
The ‘loot box landscape’ is changing as the call for stricter controls gains more weight. Belgium and the Netherlands are two countries spearheading the call for change, having made certain odds-based gaming practices illegal. In the UK, several inquiries are already underway regarding the need for new regulations, even if just to protect younger gamers, who are most at risk.
The fast-moving nature of the gaming industry will be a significant obstacle for any regulatory body to overcome. As one particular mechanic finds itself subject to regulation, a new one will come to take its place, circumventing any existing legislation.
What Are the Next Steps?
Balance is the key to everything in life, including gambling concepts in gaming. The industry must protect its players from potentially predatory practices. But that should not come at the expense of creativity and the overall gaming experience.
The first steps towards tighter gambling controls in video games have been taken by the major console manufacturers, who now require developers to disclose the odds on all loot boxes and packs. Other existing restrictions include daily and monthly spending limits; however, these are not as stringent as the level of control enforced on slot sites licensed by the UKGC.
Ultimately, video games and casinos share some common ground, but are very different. Therefore, it cannot be expected that the same level of control is placed on both. However, few could disagree that stricter measures need to be placed on children’s games or those that are overly aggressive in the use of microtransactions, even if just for cosmetic rewards.
Conclusion
The current situation regarding in-game purchases needs to change, but in a way that strengthens rather than weakens the industry. Player wellbeing needs to become the point from which controls spawn, not developer profit.
The gaming industry must be held accountable for the psychological influence of microtransactions and the risk of developing dangerous behaviours, particularly in child gamers who should be left to enjoy games for what they are intended. This discussion goes beyond present-day regulations to address the role we can all play in shaping an industry that protects future gener