Online games ‘gambling risk’
ENTERTAINMENT giants behind games such as FIFA and Minecraft make almost half their profits by encouraging players – including children – to gamble online.
The Sunday Express can reveal video game firms such as FIFA maker EA make nearly 50 per cent of their revenue through in-game extras including “loot boxes”.
The gaming industry is estimated to be worth £20billion worldwide and £700million in the UK.
In addition to shelling out up to £50 for a game, loot boxes see players pay upfront for mystery prizes that can help them progress.
A report last week by Children’s Commissioner Anne Longfield warned of a “Wild West” world in which children are routinely encouraged to gamble.
It called for action to limit the role of money in the games and said developers should not allow children to progress by spending.
Mrs Longfield said loot boxes should be classed as gambling and subject to strict restrictions.
Simone Vibert, author of the report, Gaming The System, said:
“I would look into how much of those companies’ revenue comes from loot boxes or in-game purchases.
“I think for some of them, almost 50 per cent of the money they make comes from after you have shelled out for the game, which seems pretty unfair.
“This is a space that has been left unregulated and companies have been allowed to make money out of people this way without any regard to the fact that some of them are children. This has to change.”
Loot boxes have been particularly lucrative in FIFA Ultimate Team, where they allow players to buy randomised packs of players for their online teams. The packs hold out the chance of acquiring world-class players such as Lionel Messi or Cristiano Ronaldo.
Some youngsters are spending hundreds, campaigners warned.
In 2017 EA said it was now making more than £560million a year from such transactions.
Tech analysts Juniper Research have predicted that gamers will be shelling out almost £34billion on loot boxes by 2022.
Mrs Longfield said: “Children describe a Wild West online gaming world in which they can be targeted, exploited and bullied.
“They are afraid of becoming addicted and, most worryingly, are sometimes drawn into activities that spiral out of control and cost a lot of money.”
Tim Miller, at the Gambling Commission, said: “For some time we have been closely monitoring products which blur the line between gambling and gaming.
“Last week’s report further highlights the potential harm to children and young people.”