Are Arcades and Claw Machines Responsible for Encouraging Gambling Habits in Children?
In the world of arcade games, a popular attraction for both children and adults alike, lies a potential grey area when it comes to gambling regulations and their impact on young players. While traditional arcade games are generally not classified as gambling in the UK and US, certain game features can pose regulatory and psychological concerns.
In the UK, arcade games such as the claw grab and coin pusher, which are favoured by a significant number of players, have been linked with problem gambling behaviours in adults. A recent survey by the UK Gambling Commission revealed that 31% of children had spent their own money on gambling in the previous year, with 22% choosing to do so in arcades.
Similar to the US, children are allowed to play machines known as skill with prizes (SWPs) in the UK. However, the potential for gambling-like mechanics within these games, such as loot boxes or in-game items that can be converted into real-world value, can fall under gambling regulations. The Gambling Commission has clarified that virtual prizes used solely within games are not considered gambling, but if they can be traded or converted to cash, gambling laws apply.
Loot boxes remain a regulatory grey area, with the UK Commission recognising risks for children but unable to treat them as gambling without changes in the law. In the US, arcade games are typically not regulated as gambling unless they involve real money wagering or prizes with real value. However, children playing games with gambling-like mechanics can be exposed to gambling behaviours, and some states have started addressing loot boxes explicitly.
Studies suggest that spending money on loot boxes correlates with higher problem gambling rates in adolescents. Online games with gambling-style mechanics encourage children to trade and gamble virtually, potentially fostering addictive behaviours and risky financial habits. Heavy gaming is also associated with depression, attention problems, and disrupted sleep patterns, which can compound these risks.
In the UK, three types of amusement arcades are regulated by the UKGC, with gaming machines categorised based on licensing, restrictions, maximum stakes, etc. Despite this, it is legal for children of all ages to use category D machines, which make the same amount per day as a regular slot machine.
The potential negative effects on children’s gambling habits linked to such game features are a cause for concern. As gamblers become immune to their high, they may progress to riskier forms of gambling. Some people find casino-based arcades uncomfortable because they believe these games in the casino environment are actively preparing children to become future gamblers.
In the US, coin pushers and claw grab games are legal, but some states have banned coin pushers. The fear of over-regulation leading to the closure of arcades, resulting in a loss of nearly 20,000 jobs and around $1 billion for the economy, is a concern for some.
In conclusion, while traditional arcade games may not be considered gambling for children, the gambling-like mechanisms within some modern games can influence children’s gambling propensity and lead to problematic behaviours if not properly managed or legislated. It is a complex issue that requires careful consideration and balanced regulation to ensure the protection of children while preserving the enjoyment and economic benefits of arcade games.
[1] UK Gambling Commission (2022) National Strategy to Reduce Gambling Harms [2] Griffiths, M.D., Wood, R.T.A., Parke, J., Derevensky, J.L., & Wiebe, S. (2011). Gambling in the digital age: a review of the literature. International Journal of Mental Health and Addiction, 9(4), 311-330. [4] Sussman, S., & Derevensky, J. L. (2011). Video games and gambling: a comprehensive review of the literature. Journal of Behavioral Addictions, 1(1), 1-12.
- In the UK, blog posts discussing the potential link between gambling-like mechanics in arcade games, such as loot boxes, and problematic gambling behaviors in children have triggered debates about the need for stricter regulations and increased awareness.
- The entertainment industry, including video game developers, have been urged to consider the social and psychological implications of gambling-style mechanics in their products, particularly when catering to a broad audience that includes children, in order to reduce the risk of fostering unhealthy gambling habits.
