In recent years, video games have evolved far beyond being “just a game.” Today’s digital landscapes are filled with in-game purchases and upgrades, such as loot boxes—virtual items that offer randomized rewards in exchange for real or in-game currency. For many players, it offers the thrill of winning a prize. But for others, especially young people, it could serve as a gateway to something far riskier: gambling.
Dr. Luke Clark, a Professor in the Department of Psychology and Director of the Centre for Gambling Research at UBC, has been investigating the psychological risks of loot boxes over the last several years. His most recent study, conducted in British Columbia with young adults aged 19 to 25, builds on his 2023 longitudinal study and explores whether early engagement with loot boxes predicts real-money gambling later on.
“Loot boxes mimic the same variable reward structure seen in slot machines and other forms of gambling,” says Dr. Clark, who is also a member of the Mental Health and Addictions Integrated Research Program at the Djavad Mowafaghian Centre for Brain Health. “What this study shows is that these mechanics are not just similar to gambling—they may actually lead to it.”
Loot boxes as predictors of gambling
The six-month study, led by Lucas Palmer, a PhD student under the supervision of Dr. Clark in the Department of Psychology, followed 126 participants. It assessed their spending on both loot boxes and other direct purchases in games, and then checked in to see who had started gambling in subsequent months.
“The results we found were striking,” Lucas notes. “Those who spent more on loot boxes at the start of the study were significantly more likely to begin gambling later, even when accounting for other types of in-game spending.”
Loot box users also showed higher scores on the Risky Loot Box Index (RLI), a tool developed by Dr. Clark’s team to capture compulsive and excessive loot box engagement. A common behaviour among gamblers is “loss chasing,” and video gamers may also repeatedly purchase more boxes after failing to receive a desired prize.
“We were one of the first groups to study loot boxes back in 2019. As gambling researchers, we know people have a lot of difficulty reporting their spending patterns accurately,” Dr. Clark explains, referring to a study that he and his former graduate student, Gabriel Brooks, conducted in 2019. “We started with a 12-item scale and based on psychometric analyses, we refined it down to five core items. The RLI tool has now been translated into several languages and is used by researchers worldwide.”
Compared to their previous study, Dr. Clark’s team faced more hurdles recruiting a local sample, mainly relying on Reddit, where they had to filter out a lot of participants. Still, they found that the final group were highly engaged gamers with significant exposure to in-game microtransactions, making them an important population to study.
Negative consequences highlight need for better consumer protection
“I’ve spent many years studying the design features of modern slot machines and see a lot of parallels with the technological evolution in video games,” says Dr. Clark. “As a psychologist, I see how these systems can have a range of negative consequences.”
He warns that the gaming industry’s primary design goal—keeping players on screen as long as possible—can sometimes come at the cost of player well-being. While some consumer protective features are emerging, such as gameplay limits and parental controls, Dr. Clark believes more needs to be done.
“What’s especially concerning is the availability of loot boxes in games that are intended for children,” he cautions. “Loot boxes are just one example of the convergence between gaming and gambling.”
Many in the gaming industry have argued that loot boxes are harmless and no different from collectible toys like blind boxes or Pokémon cards, which also offer random prizes. However, Dr. Clark draws an important distinction.
“For me, one important element is the potential for repeated and continuous purchases. Basically, if you want to ‘chase’ that prize, can you immediately go and buy more boxes?” he notes. “In an online video game, this is very easy to do, and for that reason, I think the ‘risk potential’ of loot boxes is substantially higher than for those other formats.”
Next steps for research
Looking ahead, his team is expanding their research into new areas.
“We’re also studying gambling and loot box streams on platforms like Twitch, which are often young people’s first exposure to these products,” says Dr. Clark. “One of our current studies is also looking at loot box features within specific games, like Genshin Impact, to understand how some of the details of loot box design might influence behaviour.”
As the video game landscape continues to grow and evolve, so do the risks. Dr. Clark’s research is a timely reminder that for some players, especially younger ones, the line between harmless play and gambling isn’t as clear as it used to be. What starts as a quick purchase, hoping for a rare prize, may lead to far more than just lost virtual coins.
