Virtual ‘loot boxes’ and other video game features may blur the lines between video games and gambling, a new report says.

A review of problem gambling in Ireland by the Economic and Social Research Institute (ESRI) has revealed around 12,000 Irish people are estimated to be “problem gamblers.”

Researchers believe the number is, in reality, much higher.

Men, young people, disadvantaged groups and those with mental health or addiction issues are at the greatest risk of developing an unhealthy relationship with gambling.

The review calls for further research into currently unregulated virtual loot boxes – a feature where video game players can receive randomised rewards for good performance or for a payment with real money – and their impact on Irish young people.

Players can win items that might be beneficial to them in the game, like weapons, armour or ‘skins’ that change the appearance of their character.

“The main concern with loot boxes is that they are very similar to gambling, particularly when paid for with real money, but remain largely unregulated and so accessible to minors,” the review says.

Further research on the links between these boxes and problem gambling may be important “to inform policy,” it adds.

The line between video game features such as loot and gambling is “becoming increasingly blurred,” the review states, adding that the use of influencers and celebrities in gambling promotions is also “particularly problematic” for young people.

Another issue is online casino games that mimic gambling without involving any real money, the review finds.

The games are not subject to gambling regulation so are accessible to young people, prompting “speculation” that they may act as a gateway to real gambling.

In an Irish context, researchers say there is little research into “the extent to which minors are being exposed to gambling advertisements via social media and the extent to which they can bypass age checks and access gambling websites and apps.”

Messages that encourage people to “gamble responsibly” are also unlikely to be effective against problem gambling, the research shows.

The research found that the true extent of problem gambling in Ireland is likely “substantially” underestimated.

The ESRI found that problem gambling is more prevalent among young men, people in disadvantaged communities, and those with addiction and mental health problems.

There are an estimated 12,000 adults recorded as problem gamblers, with tens of thousands more considered at risk, researchers found.

However, the ESRI said this figure is likely higher as the methods used in Ireland to measure the issue are likely to underestimate it.

Individuals may understate the extent of their gambling when it is measured in surveys due to the high degree of stigma associated with problem gambling, the ESRI said.

International research finds that the societal harms caused by problem gambling extend beyond the individual to families and communities. The public, on average, views gambling negatively. Problem gambling is highly stigmatised.

The review found “reasonably strong” evidence that gambling advertising increases gambling. Evidence also shows that gamblers can be lulled into spending money on complex bets based on unlikely combinations of outcomes. Messages that encourage people to “gamble responsibly” are unlikely to be effective, according to the research.

Last year the Cabinet approved the publication of new legislation that will overhaul the way gambling is regulated and advertised in Ireland.

The Gambling Regulation Bill will provide for a modernisation of the licensing and regulation of gambling, and deal with the impact of technology on an industry which increasingly plays out online.

It will also ban gambling advertising between 5.30am and 9pm each day. Advertising will also be prohibited online unless a person opts into receiving adverts.

There will be a prohibition on children being in any premises where gambling takes place and restrictions on gambling advertising on events involving children.

It will see the introduction of new, independent statutory body called Údarás Rialála Cearrbhachais na hÉireann (the Gambling Regulatory Authority of Ireland).

It is anticipated that the bill will complete its journey through the Oireachtas later this year.

Anne Marie Caulfield, CEO designate of the Gambling Regulatory Authority said: “A critical function of the new Gambling Regulatory Authority will be to create greater awareness of problem gambling and the supports available to those that need assistance.

“If we are to successfully tackle problem gambling we need to know the extent of the issue and how it is impacting on people’s lives. We have commissioned the ESRI to conduct a second study focused on measuring the extent of problem gambling and we anticipate results later this year. This new research study will ensure that our policy decisions and measures are evidence-based and informed by research.”

Professor Pete Lunn, head of the ESRI’s behavioural research unit, said: “There is an urgent need for better research to more accurately measure the number of problem gamblers and what can be done to reduce it.

“Based on current evidence, we are pretty sure that the true extent of the problem is hidden from public view, along with some of the forces behind it. We are currently planning research designed to change that.”

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