Is Your Child A Secret Gambling Addict?

“Hey Mum/Dad, I need V-Bucks to get the new Lewis Hamilton skin.”

Asking mum for money for micro-transactions

As parents, we know this request far too well.

Our kids are forever “needing” the latest Battle Pass, emotes, character skins, pickaxes, gun wraps, gliders, and, and, and…

With the rise of online gaming, microtransactions (mtx) are a dominant feature, especially with the Gen-Z generation born between 1997 and 2012. These mini purchases (usually only costing a few quid) allow our kids to purchase virtually anything, from cosmetic avatar upgrades and booster packs to gaming shortcuts.

The mtx market share is estimated to reach $121.18 billion (£95.6 billion) by 2033. And while we understand that we’re lining the gaming developer’s coffers, we allow our kids to purchase them nevertheless. Right?

But, are we turning our kids into secret gambling addicts with these “harmless” transactions? Are we teaching them to pay to win instead of putting in the hard graft?

The answer is: Possibly.

So let’s dive into it – we’re in this together, after all!

Microtransactions: Explained

Microtransactions, or downloaded content (DLC), are electronic in-app purchases that players make inside an online game – using real hard-earned cash.

Kids always want the latest gaming upgrades, from “fire” (Gen Z slang for “cool”) Fortnite characters like Neymar and Eminem to exclusive football player packs on the latest FIFA.

These appealing extras are what we call microtransactions.

Mtxs are a type of business model used by gaming developers – Epic Games (Fortnite), Mojang Studios (Minecraft), Infinity Ward (Call of Duty) – to generate revenue from free-to-play games. On the positive side, these mini in-app buys allow developers to offer free online games, making them accessible to a wider audience.

However, microtransactions have infiltrated almost every game imaginable, whether your kid plays Fortnite or Call of Duty. Gosh, even Candy Crush has pay-to-win or ad-free features!

Think about it: Microtransactions have become so prolific due to evolving business models within the modern gaming industry. Similar to how movies and DVDs transformed into streaming services, the video game industry also adopted the live service model.

Game developers have moved away from releasing a ‘polished product’ on launch day, rather, they aim to build a platform where content can be added continuously – for extra cost, extending their product life cycle. This can become problematic for customers, who now recognise they’re often buying expensive (£60+) games once and then continuing to shell out for new content.

How Do Microtransactions Work?

We get it.

Microtransactions are nifty, impulsive buying tricks of big-name developers to drive players towards spending more money.

Players buy in-game currency with real money, which is spent on virtual items. This model encourages continuous spending to enhance the gaming experience.

Annoyingly, modern video games like Fortnite and Roblox are filled with microtransactions. Meaning, you often need to use virtual currencies to progress to the next level.

These small, inexpensive, in-store transactions are usually in the form of:

Subscriptions: Battle Pass, Loot Boxes, Minecraft maps, ad-free access, etc.
Virtual currencies: V-Bucks, Minecoins, Robux, FC points, etc.
Character customisation options: Fortnite skins and emotes, FIFA kits, etc.

While, yes, kids can earn these currencies by winning levels, there may come a time when they need to “boost” their weapons, football teams and/or racing car components to get a leg up on opponents.

This is where microtransactions have slid into our bank statements, along with other potential risks…

Potential Risks: The Downside Of Microtransactions

The biggest drawcard of online gambling – oops, gaming – is to disconnect from reality for a while. However, alarm bells should ring when your real-world income is affected by these virtual realms or when your kids’ behaviour changes.

Let’s take a closer look at a few risks:

Gambling-like behaviour

Many microtransactions, especially loot boxes, blur the lines between ethical play and gambling. Players spend money to “win” random items in a box without knowing what they will receive. This level of excitement and anticipation directly mirrors gambling addiction. Are we potentially setting our kids up for failure in the future?

Financial problems

Like gambling, exorbitant microtransaction purchases can lead to monetary issues. Players who continuously spend money chasing rare items or upgrades resemble how gamblers chase winnings.

Gaming addiction

Online games, along with the allure of quick microtransaction “winnings,” can negatively impact our children’s mental health. This can lead to Internet Gaming Disorders (IGDs) which are becoming more prevalent among adolescents who spend copious amounts of time online.

Examples include behavioural changes; social withdrawal; increased risk of depression, anxiety and obesity; inability to quit gaming (a.k.a. addiction); poor academic performance; and low self-esteem.

Predatory practices

Some microtransaction models have been criticised as predatory, especially when targeting children and vulnerable players.

For instance, in 2023, Epic Games settled with the Federal Trade Commission (FTC) for $245 million (roughly £193 million) over allegations of deceptive practices to trick players into making unwanted in-app purchases.

Play-to-win vs pay-to-win

Many players dislike microtransactions that provide gameplay advantages, viewing them as “pay-to-win” features that undermine fairness. These mini-purchases allow gamers to advance to higher levels without developing their skills.

Back in our day, we had to advance to the next level of Crash Bandicoot by navigating various obstacles and enemies while collecting wumpa fruit, power-ups and “Aboogabooga” masks – all based on pure grit and determination with no microtransaction fee in sight!

Costs Of In-Game Purchases: Are They Impacting Your Family Finances?

Here’s a quick estimation of what you could be spending on microtransactions:

1,000 V-Bucks = £6.99
1,700 Minecoins = £9.99
1,000 FC points = £9.99
1,000 COD points = £9.99

As you can see, these small amounts may seem like nothing in the beginning. But when you add them up in a week or month, you get a better idea of where your money is going.

For instance, you buy V-bucks for your kid three times a week. This totals around £84 per month or over £1,000 per year. To put this into perspective, basic house insurance for an average 2-bed UK home is only £160 annually!

There’s a dividing line between “having the money to spend” and “responsible behaviour”. While you may have the additional income to spend on whatever you (and your kids) want, it’s our moral duty as parents to teach our children about the repercussions microtransactions could have on family finances – especially if gambling addictions become apparent.

Global microtransaction facts

To further drive this point home (no pun intended), based on The Business Research Company’s global market report, the current 2024 microtransaction market value is approximately $80.88 billion (£63.7 billion). With the predicted 10.6% compound annual growth rate (CAGR), the revenue forecast is expected to reach $121.18 billion (£95.6 billion) by 2033!

Yes, you read that correctly – £95 billion in less than a decade!

(And we’re all guilty of contributing to these staggering numbers…)

While only 5-20% of players engage in microtransactions, developers have generated significant profits via this small portion of free-to-play (F2P) game microtransactions.

Parent Tip: Monitoring And Managing In-Game Spending

So, how can you navigate this digital world with your child?

Here are some tips:

Talk openly to your kids about microtransactions and their potential risks.
Establish clear guidelines for in-game spending or use it as a bonus system to reward good behaviour.
Limit (or disable) in-store purchases via gaming consoles – PlayStation, X-box, PC – family settings.
Set up two-way authentication settings for online purchases (via your banking app). This allows you to control online interactions (and your budget!) as you’ll need to either enter an OTP or provide face verification.
Encourage games with no microtransactions.
Spend time gaming with your child. This fosters understanding and helps you monitor their in-game activities.

Expert Opinions: The Psychological Effects Of Microtransactions On Children

There’s a direct link between online gaming microtransactions and gambling disorder, with Loot Boxes being the most addictive – according to a National Library of Medicine study.

Take The Diamond Casino and Resort in Grand Theft Auto V (18+ rated game), for example. It allows players to use real money in a (virtually) real casino – amongst other adult behaviours.

The same study concludes various other observations, such as:

IGDs are a real thing. Psychosocial problems such as deceiving family members, loss of interest in once enjoyable activities and social isolation are just a few harsh realities of these disorders.
Excessive gaming is associated with an increased risk of developing psychiatric conditions such as depression, anxiety, and neurotic behaviour.

As parents, we must help our children navigate the complexities of microtransactions to ensure they are aware of the potential pitfalls and can identify addictive behaviours.

The Conversation Continues

So there we have it, a quick rundown on the effects microtransactions could have on our kids. While V-Bucks, Minecoins and COD points might seem harmless initially, we could be promoting addictive and pay-to-win behaviours in our children.

Join the discussion and share your thoughts, experiences and how you [manage screen time] and in-game purchases in the comments section below.

Is Your Child A Secret Gambling Addict? Understanding Microtransactions And Their Effects On Kids