SBC News Voice of the Sports Betting Industry
Sweden’s gambling authority, Spelinspektionen, has released a follow-up report to its 2023 survey on the increasing prevalence of gambling among young adults and minors.
In the 2023 results, the authority presented several indicators suggesting that the proportion of 18-24-year-olds who gamble in Sweden is on an upward trajectory.
The report also highlighted concerns regarding the growing number of minors engaging in gambling, a trend observed since 2019, particularly among boys in early school years, such as those in Year 9.
Spelinspektionen has suggested a correlation between the exposure of minors to gambling and video games containing lottery-like elements, particularly loot boxes, which may serve as a motivation to gamble.
According to 2023 statistics from the Swedish Media Authority, over half of people aged 9 to 19 played video games at least once that year. This percentage rises to 80% for both girls and boys aged 9 to 12.
Many modern video games have adopted a revenue model that relies on in-game microtransactions, where players use a type of virtual currency—either earned through gameplay or purchased with real money—to buy digital items within the game.
The most extreme example of this practice is loot boxes, where purchases grant players a random item of varying worth. This means that an item’s value can be either greater or lesser than the price of the loot box, incorporating lottery-like elements into gameplay.
In Spelinspektionen’s latest report, all surveyed men had engaged with such elements at least once before turning 18.
The report further suggests an overlap between computer games and gambling, citing findings from the Swedish National Association for Gambling Addicts (NAGA).
Discussions between Spelinspektionen and NAGA indicate that many young adults under 25 who have sought problem gambling support in the last two years had previously played video games featuring lottery-like elements.
Statistics referenced in the report reveal that 45% of 18-24-year-olds have purchased a loot box at some point in their lives. Concerns are further intensified by findings that 62% of individuals who bought their first loot box before the age of 12 also engaged in gambling before turning 18. Additionally, 26% of these early buyers started gambling for money before the age of 16, compared to 16% in the general population.
Researchers believe that loot boxes can create a psychological mindset similar to gambling, as their mechanics closely resemble slot machines, featuring randomised rewards.
Loot boxes share several characteristics with traditional gambling, raising concerns about their potential influence on gambling behaviour such as providing winnings and incentive via a randomised reward. According to survey interviews, all respondents who had purchased loot boxes believed that doing so increased their likelihood of engaging in gambling for money later in life.
Research highlights a connection between loot box spending and problematic gambling behaviour. Among 16-17-year-olds who had purchased loot boxes but had not yet gambled, many expressed an intention to start gambling once they turned 18.
Loot boxes also have financial and social implications, significantly affecting young players. Many use their parents’ credit cards to make purchases, often without fully understanding the extent of their spending. One respondent in the study compared opening loot boxes to playing Blackjack, emphasising the thrill, excitement, and addictive nature of the experience.
Spelinspektionen concludes that given the similarities to traditional gambling, loot boxes can contribute to the development of early gambling habits among young people. As such the “popularity of microtransactions and loot boxes in gaming highlights the urgent need for regulation and awareness to address potential risks.”
