Study Shows Asian Online Gamers Keen On Buying Loot Boxes

A recent study shows over 70 percent of Asians living in New Zealand who have played online video games in the last 12 months have purchased loot boxes at least once, or a similar reward mechanism to increase the chance of winning.

The study, conducted by Trace Research and commissioned by Asian Family Services, looked at the online gambling and gaming habits of Asians living in New Zealand.

Kelly Feng, Chief Executive of Asian Family Services, says the study shows online gamers are also at risk of gambling harm.

“Video gamers are so competent online which can lead them to explore gambling as well,” she says.

“The study shows that over 59 percent of online video gamers have engaged in online casino gambling simulations which can lead to real money gambling. These gamers are significantly more likely than average to be frequent gamblers on online casinos.”

Data shows the demographics of those who are more likely to play online video games include Indians, other Asians (excluding Chinese and Filipino), aged 18 – 29 years, male, and those with higher incomes of $100k or more per annum.

The study shows over 80 percent of Asians have engaged in online gambling and gaming activities in the last 12 months with the most common activities being Lotto or Instant Kiwi online (73.8%), followed by online video gaming (50.8%), and TAB sports betting online (41.1%).

Kelly Feng says when it comes to gambling harm the study revealed that large numbers of Asians living in New Zealand did not know where to seek help if they needed it.

“It’s really concerning that over 56 percent of Asians in this study didn’t know where to go to get support if their gambling was problematic,” she says.

“Three major barriers to seeking help were identified and it shows there is limited knowledge of support services, a lack of awareness about the severity of problems and limited understanding about counselling and how effective it is.”

“There is also huge stigma associated with gambling in the Asian community which is a real barrier to help-seeking.”

View the full report New Zealand Asian Responsible Online Gambling Report 2022 here.

Asian Family Services provide free information, advice and support for anyone affected by harmful gambling. Services are confidential, professional and non-judgemental. Ph 0800 862 342

www.asianfamilyservices.nz

Background

What are loot boxes?

Since about 2016 loot boxes have become increasingly common on all gaming platforms.

They are digital containers holding random items that players can use in a game that operate a bit like a ‘lucky dip’. Players don’t know what they are getting until they’ve opened the box. These digital boxes contain items like a new character outfit, weapon, or special ability. Often these games encourage players to spend real money on loot boxes, though they can sometimes be earned by playing the game. Good items are rare, worthless items are common.

Are loot boxes considered gambling?

A 2017 study found that almost half of the loot boxes reviewed met the psychological criteria to be considered gambling. Several studies found people with gambling problems tend to spend more on loot boxes than people without gambling problems. That means people who have a gambling problem may pay for loot boxes more than other people.

The financial stakes can be high. At the extreme end, large sums of money are being spent – up to $1500 for a single item.

In New Zealand, the Department of Internal Affairs, has deemed that loot boxes do not meet the legal definition of gambling.

How are loot boxes similar to gambling?

Both loot boxes and gambling often rely on intermittent rewards. That means winning what you want only now and then. This is a powerful way to encourage someone to continue doing something. It teaches a person to feel that even though they didn’t get what they want they are one step closer if they just keep trying. Essentially, a “loss” is seen as a step on the pathway to a win. This kind of behaviour is quick to learn and hard to unlearn.

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