There was a time when the worlds of gambling and video games seemed fairly separate. But the line between gambling and gaming is getting thinner. Over recent years, we’ve been noticing a growing crossover in these worlds, particularly when it comes to monetization schemes such as loot boxes. Let’s explore the history of gambling in video games.
How Long is the History of Gambling in Video Games?
According to Dr. Mark R. Johnson, “In the earliest days of video game arcades, players would wager money on the outcomes of multiplayer games … Wagering money in/on video games is thus just as old as the medium itself.”
Dr. Johnson also asserts that “All games actively encourage us to wager. Not money, but time, effort, and social status are wagered when we play.”
So, it should come as no surprise that money has been brought into the mix more and more over time. Video games and gambling go together like two peas in a pod.
What are some of the ways in which video games and monetary gambling now overlap? Mary Ann Liebert, Inc. explains, “The Morgan Stanley Research Report noted five primary types of convergence between gaming and gambling: (1) the introduction of gambling elements into social media games; (2) the use of social gaming features on online gambling sites; (3) the gamblification of non-gambling type games in which individuals have the opportunity to win items of value; (4) the consolidation of similar games on non-monetary sites where the operator of both non-gambling activities and online gambling activities are the same; and (5) the cross-marketing of online gambling sites to social casino players.”
Let’s take a closer look at some of these convergences so that you can better understand the complex relationship between gambling and video games.
Loot Boxes
One of the most notorious forms of gambling in gaming in the modern era is a monetization scheme called a “loot box.” You might already be familiar with loot boxes and how they work. Maybe you have even purchased them yourself. But you might not be familiar with them if you do not play games which involve them.
The New Yorker writes, “Among the more insidious gifts that video games have bestowed on modern culture is the loot box. A loot box is like an in-game lottery ticket: for a small fee, involving real money, a player can purchase an assortment of items that promise to enhance the game experience. In Overwatch, a pack of five loot boxes ($4.99) might land you a legendary skin that makes your Hanzo character look like a Kabuki figure.”
The issue with loot boxes is that your chances of getting a really awesome bit of loot are not that high. You will probably get something else which isn’t as valuable. Disappointed, you might think, “I’ll just have another go.” You then may decide to buy another loot box, and another, and another. There is no guarantee you will ever end up with the item you wanted. Indeed, you might have bought it for less ultimately by purchasing it through more direct means.
Young people in particular seem prone to purchasing loot boxes. Needless to say, this has a lot of regulators concerned about children gambling.
Other Ways Gambling Shows Up In Gaming
Aside from loot boxes, what are some other overlaps between monetary gambling and gaming? Well, one of the most obvious examples is esports betting. Indeed, COVID-19 has given interest in esports betting a major boost. Most traditional sports seasons and events were canceled or put on hold during the lockdown period. As a result, bettors had to turn elsewhere for action, and looked to esports for opportunities.
Another example of a convergence between gambling and gaming is the existence of “social casino games.” These are regular casino games, but they are played for free instead of with cash. They crop up on casino sites, social networking sites, video game platforms, and more. Directly or indirectly, they can serve as a gateway to gambling with real money. Finally, there are also video games which feature gambling in them as part of the in-game world. For example, you can gamble in Red Dead Redemption and Red Dead Redemption 2. There is no real money involved, but players can wager their in-game cash on games like poker and blackjack.
What Does the Future Hold?
We have talked about the history of gambling in video games, but what can we expect going forward? Well, Belgium went as far as banning loot boxes. Other legislatures have debated doing so as well. But that doesn’t mean enforcement would be easy. It also wouldn’t prevent new monetization schemes from showing up with similar mechanics.
We are guessing that more regulatory debate is on the way, and maybe more bans. But either way, two things are certain. People love video games, and they’ve been gambling for centuries. One way or another, both are here to stay.