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The UK government recently published a review of skins gambling. Skins gambling
involves the betting of virtual items (skins) obtained in online
video games.

It is becoming increasingly popular and has raised concerns
regarding its potential risks and harms. One key reason for these
concerns is the design of skins gambling and its association with
video game loot boxes, which often attract younger players. Young
people, who are generally more susceptible to gambling-related
harm, may be drawn into underage gambling behaviours through video
gaming, potentially serving as a gateway to gambling.

Given the anonymity afforded by the platforms offering skins
gambling, the absence of age verification at the point of use, and
the fact these activities are largely unregulated, makes them
easily accessible to individuals, particularly children and young
people, regardless of laws and regulations in specific
jurisdictions. This lack of regulation, the absence of acceptable
responsible gambling standards on the platforms, and the potential
for increased exposure, could lead to gambling-related harm that
includes the development of unhealthy gambling behaviours at a
young age.

The report considered the following key questions:

  • How does skins gambling compare to traditional forms of
    gambling in terms of game design, participation, demographics, and
    impact on gambling-related harm?


  • What are the risks of participating in skins gambling for
    vulnerable groups, especially children and young people?


  • How accessible is skins gambling compared to regulated
    gambling, and through which platforms is it primarily offered?

Findings of the report

The report calls for comprehensive regulation and policy reform
regarding skins gambling. A clear pattern has emerged from the
research. The convergence of video game playing and gambling is
increasingly evident, with young people being particularly
vulnerable to engaging in gambling-like activities through in-game
items such as skins. The normalisation of these behaviours within
video game communities, often amplified by influencers and content
creators, further reinforces the risks faced by young players, many
of whom are unaware that they are engaging in gambling
practices.

The global regulatory landscape remains inconsistent, outdated,
and frequently unenforceable. Most countries have yet to address
skins gambling directly. Where regulation does exist, it often
fails to consider the complex dynamics of digital asset ecosystems
and gambling mechanics embedded within games. In particular, the
lack of specific legislation to govern skins gambling leaves many
players, especially minors, at risk of harm, as evidenced by the
association between skins gambling and problem gambling behaviours,
and problem gambling severity.

The report emphasises the need for legislative clarity and
reform. The report says that the UK government, alongside
international regulatory bodies, must recognise skins gambling as a
distinct form of gambling, ensuring it falls under appropriate
regulatory oversight. It also calls for game developers to
implement age-based safeguards and monitor third-party misuse of
in-game items, to prevent illegal gambling.

In the past, the UK government has rejected regulating loot
boxes. It will be interesting to see if this report changes that
viewpoint. The Online Safety Act already requires stricter age
assurance, which may reduce access to gambling websites by
children, although children can be expert in circumventing such
barriers.

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