Up to 40 per cent of adolescents in 2022 reported gambling on digital games. Popularity with young AustraliansĦ.5 Simulated gambling and gambling-like features in interactive games are popular among young Australians. Of Australians aged 13 and 14 years, 15-16 per cent were reported to have gaming disorder in 2022. Young adolescents may be particularly vulnerable to gaming disorder. This suggests the need for an evidence-based clinical response to the harm caused by games and public health measures to protect Australians, particularly young people. Gaming disorder, like gambling disorder, is classified in the International Classification of Diseases (ICD-11) as a disorder caused by addictive behaviours. It considers the regulatory approaches of other countries and the need for further measures to reduce the risk of harm to young Australians from these products.Ħ.3 Concerns were raised that simulated gambling and gambling-like features in interactive games may cause harm, including addiction, and can normalise monetised gambling among young people, leading to gambling harm in the future.Ħ.4 Many young Australians are developing gaming disorder and experience a wide range of harms from their use of interactive games.

This chapter examines the potential for harm of simulated gambling and gambling-like activities in interactive games, and the adequacy of existing regulation and consumer protections.

Skins can be found in loot boxes and have value outside the game as they can be sold, traded, or gambled on online marketplaces, such as illegal skin and esports gambling websites, for money. Skin betting, which involves the gambling of rare and sought after in-game items referred to as ‘skins’.Players can earn or buy virtual currency but cannot ‘cash out’ any winnings. Social casinos are widely available on computers, game consoles, handheld devices and social media. Social casino games, which do not involve real money but mimic regular casinos and electronic gaming machines.

Some loot boxes more closely resemble gambling than others. Loot boxes can involve in-game purchases (sometimes referred to as ‘microtransactions’), or the use of in-game currency that can be purchased, or can be accessed during normal gameplay as rewards based on merit. There are a range of different types of loot boxes in games.

Loot box features in popular interactive games and mobile apps that give players the chance to win valuable in-game items.

Australians are increasingly concerned about the exposure of children and young people to simulated gambling and gambling-like activities.

Simulated gambling and gambling-like activities.

Video games with casinos in them