A rapid evidence review of skins gambling

Concerns have been raised regarding skins gambling and as such the DCMS commissioned a report to look at the potential risks associated with betting on virtual items in online video games, especially within vulnerable populations including children and young people.

Skins gambling has been an emerging phenomenon for a number of years and includes players acquiring virtual skins in games that can, for example, alter a character’s appearance or alter virtual weapons in games.

The report explores the convergence and divergence of game design between skins gambling and traditional forms of gambling. It states that “several known harmful gambling features were identified” and that “…many of the contemporary skins gambling games have design features that promote the illusion of control, such as allowing players to set the risk-profile of games and to make in-game decisions despite the pre-determined outcome. Some games also offer ‘player versus player’ modes, which induces competition and may exacerbate risk-taking behaviours.”

Policy recommendations within the report include:

• Launching a national awareness and harm prevention campaign around skins gambling.
• For the Gambling Commission to require skins gambling operators to obtain licenses
• For game developers to:
  • build age-based safeguard into skin trading systems
  • collaborate with regulators and researchers to develop best practice for digital item design
  • avoid creating skins that enable illegal gambling

The report concludes that there is a need for the UK government to recognise skins gambling as a type of gambling and for it to have regulatory oversight, as well as game developers to take on responsibility for how they can prevent children from getting access to gambling features.

Skins gambling appears to only be growing in its popularity, so it is a matter of watch this space for the next steps the DCMS chooses to take.

The full report can be viewed here.

If you have any questions on the above, then please feel free to reach out to Imogen Moss, Licensing solicitor on 0115 953 8500 or i.moss@popall.co.uk