A study published by the Responsible Gaming Agency in New South Wales (NSW) cautions that novel forms of wagering, such as loot boxes, could result in a rise in young individuals engaging in gambling and potentially worsen gambling-related dangers in the years to come.
The study, authored by a group of researchers at Central Queensland University, examines the evolving landscape of gambling for children, teenagers, and young adults.
Researchers polled 2,004 young people in NSW between the ages of 18 and 29, asking them to complete an online survey about their gambling and gaming behaviors.
The results showed that participants aged 25 to 29 were more likely to have taken part in conventional forms of wagering, such as sports betting or slot machines, in the past 12 months. Lotteries were the most popular form of gambling, with 64.8% of respondents having played in the past year, followed by scratch tickets at 62%.
A mere two percent and slot machines constitute fifty-two point nine percent.
Nevertheless, individuals aged eighteen to twenty-four are more prone to engaging in novel forms of gambling and simulated gambling, such as acquiring loot boxes and skin gambling within video games, where individuals wager using virtual items. Within this age bracket, roughly fifty percent have opened loot boxes in video games within the past year, while forty-four point nine percent have participated in games incorporating some form of gambling mechanism.
For this age group, the survey revealed that individuals are more likely to have engaged in some form of gambling prior to the age of eighteen, with sixty-two point seven percent having played video games containing gambling content. This represents the highest percentage among the older group, but only forty-four point five percent of them have played these games.
The older group is more likely to recall being exposed to gambling by adults (including parents) within the home, although the younger group also reports being exposed in this manner. In the older group, eleven point one percent indicated that adults in their home gambled regularly, compared to seven percent in the younger group.
The study also discovered that those who participated in emerging forms of gambling as minors were not significantly more likely to experience gambling-related harm, but those who gambled for the first time at age eighteen were “significantly more likely” to experience harm in the past twelve months.
Researchers also observed that the association between each emerging form of gambling harm “remained statistically significant” after accounting for age, impulsivity, and participation in conventional forms of gambling.
Experts have determined through their investigations that new types of betting are possibly taking the place of conventional forms, especially among young adults, as they are accustomed to these activities from a young age.
The report states: “Individuals born in more recent years are less likely to participate in traditional forms of wagering compared to older generations.” “While they are more likely than older generations to remember their first encounter with traditional gambling during their childhood, this does not necessarily mean they continue to engage in these activities as adults.”
“These findings indicate that traditional gambling products may not be as attractive to this younger generation who grew up playing interactive games.”
The study also observes that younger generations report less exposure to gambling in the home compared to older generations, which could be a factor in their lower involvement in traditional gambling forms.
However, the study also highlights that the emergence of new forms of gambling has the potential to lead to earlier exposure to gambling, which could result in real-money gambling in adulthood and potential harm. Therefore, researchers suggest further investigation to determine if the low levels of harm among younger generations can be maintained.
Its astonishing that individuals who first encountered novel forms of wagering in their youth are not more prone to gambling-related damage than those who encountered conventional forms. This could be due to the fact that the cost of emerging forms may be lower than traditional forms.
However, since young people may be substituting traditional forms of gambling with these emerging forms, these emerging forms should be examined to determine how they can be modified or regulated to minimize their potential detriment.
Investigators, in summarizing their findings, noted that while the lower proportion of young people participating in traditional forms of wagering may help reduce gambling harm, the higher proportion engaging in emerging forms of gambling may sustain or worsen gambling harm in the future.
“Our conclusion is that these emerging forms are not innocuous and require additional attention because they are attracting young people, who are susceptible to harm,” stated the investigators. “As gambling technologies can change quickly, it will be essential to continue to investigate new gambling forms and simulated gambling forms in the future.
“Since each form operates differently and has different current regulatory frameworks, any changes to regulation will need to be considered on a case-by-case basis.”
In related news, the NSW Office of Responsible Gambling has committed a total of A$236,000 (£128,832/€142,716/$168,909) to four new initiatives to help address gambling harm among young people in the state.
Fresh initiatives in southwestern Sydney will be supported by the “Youth Opportunities” scheme.
The Cumberland City Council will obtain $60,000 for “Cumberland Youth Opportunities,” a local campaign and educational resource concerning gambling issues in the Cumberland region. The Fairfield City Council will also get $60,000 to back “Paid to Play?”, a collection of videos educating young people about recognizing gambling problems.
Campbelltown’s “Mental Health Center” will also receive around $60,000 for “Cash is Out of My Hands,” a program that will include educational materials, personal accounts, and skill development for youth workers.
Furthermore, the Woodville Alliance will get $56,000 for “Game Over: Vietnamese Youth Project,” a series of short videos about gambling and associated problems, aimed at young people of Vietnamese heritage residing in Fairfield.
Natalie Wright, Head of the NSW Responsible Gambling Office, stated: “Studies indicate that gamblers aged 18-24 are more prone to experiencing gambling issues, so we have programs like “Youth Opportunities” to assist in providing education for these communities, with an emphasis on early intervention.”
Sign up for the iGaming newsletter.