Department for Culture, Media and Sport investigates skins gambling in the UK
The report looks into skins gambling, referring to bets placed on virtual items in video games, such as a new appearance, or skin, for a character or item.
Key points:
– DCMS has launched an investigation into skins betting
– It concluded that urgent action is needed to regulate the space and protect children from gambling harm
The UK’s Department for Culture, Media and Sport (DCMS) has conducted an investigation into skins gambling.
Skins gambling refers to betting on virtual items in video games, such as those that may alter the appearance of a character or item, referred to as a skin. Concerns have been raised due to the practices similarity to loot boxes – which have been banned or restricted in several countries – and have been known to attract younger players.
Moreover, with skins gambling sites frequently being anonymous, KYC practices are often absent, and are thus unregulated. The potential of encouraging problem gaming, especially in young people and children, sparked the investigation.
Key points DCMS tried to answer were whether skins gambling compares to traditional gambling, risks to players and how accessible skins gambling is compared to regulated gambling.
DCMS concluded there is an ‘urgent need for comprehensive regulation and policy reform regarding skins gambling.’ It found clear patterns between video game play and gambling, and that young people are particularly vulnerable to these sorts of activities – made even more severe by the presence of internet communities and influencers. Moreover, regulation remains inconsistent and unenforceable, with few countries having directly addressed the issue of skins gambling.
Good to know: Skins gambling has existed for around a decade. Gambling Insider looked into the topic in 2016, and again in 2018
DCMS recommends that legislative clarity be introduced, and that the UK Government and relevant regulators recognise the distinct nature of skins gambling, so that it can be overseen by the correct body. This would allow for regulation, safeguarding and oversight in the market. It has also called for game developers to acknowledge and take responsibility for these mechanics, to keep underage players from interacting with a form of gambling.
It also suggested that public awareness campaigns and education on the matter at schools should be implemented.
It concluded: ‘Ultimately, the regulation of skins gambling requires a concerted effort from all sectors and stakeholders, ensuring that players are better informed, protected, and supported as the gaming landscape continues to evolve.’
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