An investigation led by Edge Hill University has secured £900,000 in funding to study the impact of loot boxes on children. The study aims to understand how the gambling-like elements in games influence the development of primary school-aged children.
Dr. John Shaw, a Senior Lecturer in Psychology at Edge Hill, will be heading the research. In a recent press release, Dr. Shaw mentioned that “loot boxes exhibit psychological similarities with gambling and are associated with mental health challenges in young individuals.”
Previous studies have not fully determined how involvement with loot boxes evolves over time, how they impact broader psychological development, or which children are most vulnerable, according to the researchers.
The project is set to span three years, commencing in January 2027. Edge Hill will be collaborating with organizations such as YGam, Internet Matters, and ADHD UK on this research.
Children Encouraged to Purchase Loot Boxes
Edge Hill noted that over 90% of UK children aged 5 to 11 engage in video games, with one in three making in-game purchases, spending an average of £26 per month.
“Children are often pressured to participate in microtransactions through various tactics such as limited-time offers, item rarity, and the social appeal of virtual goods,” stated Dr. Shaw.
“The risks associated with these aspects may be particularly concerning for neurodivergent children, including those with ADHD and autism, who typically spend more time playing video games. Acquiring this knowledge is crucial to safeguard children, support vulnerable groups, and promote digital literacy for families navigating increasingly commercialized gaming environments,” he added.
Gaming Companies Criticized for Loot Boxes
Gaming companies have faced criticism in the US recently due to the inclusion of loot boxes in their games. New York’s Attorney General Letitia James sued Valve in February, alleging that it encourages gambling among children.
James argues that loot boxes in Counter-Strike 2, Team Fortress 2, and Dota 2 resemble casino games and should be prohibited.
In June, Valve and Riot Games, among other gaming firms, had to pay approximately £45 million in compensation to settle a lawsuit in Brazil. The lawsuit claimed that the use of loot boxes is significantly harmful to young gamers.
Critics assert that the random rewards function as a gateway to potential gambling issues, including betting on esports, which is growing in popularity. GRID recently announced the introduction of GRID Odds, an esports betting service for gambling operators.
Loot Box Games Now Rated 16 in UK
Researchers also suggest that opening loot boxes is linked to various other problems, including substance abuse, mental health disorders, gaming addiction, and gambling addiction.
Consequently, the Pan European Game Information (PEGI) announced an update for games featuring loot boxes. Starting from June this year, games with these randomized purchase features must receive a PEGI 16 or 18 rating.
The UK adheres to the PEGI rating system. This means that games like EA FC, previously rated PEGI 3, could potentially receive a PEGI 16 rating in their next release. Similarly, Dota 2 currently holds a PEGI 12 rating, which may also be elevated.
The study conducted by Edge Hill University is expected to provide further evidence against loot boxes, increasing pressure on the UK government to implement stricter regulations against their inclusion in games.