Article how gaming works
Series: How Gambling Works

How gaming works

6 min read

Do you want to learn more about gaming?

Understanding how gaming works is an important first step for those who are starting to become concerned about their gaming. Understanding the risks associated with gaming can help you to make well-informed decisions about how to best protect or help yourself if you decide to change your gaming.

Do you want to learn more about gaming?

Understanding how gaming works is an important first step for parents and other people who are concerned about a family member or friend’s gaming. Understanding the risks associated with gaming can help you to make well-informed decisions about how to protect your family member or friend and to respond if they decide they are ready to seek support.

Do you want to learn more about gaming?

If you’re a teacher, school counsellor, youth worker, health professional, or other professional who is concerned about the gaming of someone you’re working with, an important first step is to obtain accurate information about how gaming works. Understanding the risks associated with gaming can help you to make well-informed decisions about how to protect the person and to respond if they decide they are ready to seek support.

What is gaming?

Gaming involves playing games, increasingly online, with people from all over the world. It may seem fun and harmless, but research shows that about 2% of people have issues with their gaming. People who have problems with gaming are also more likely to gamble. More and more people are seeking help from gambling and other counsellors for issues with their gaming.

Issues with gaming develop when the gaming is persistent, there is a loss of control over gaming, and there are harms resulting from the gaming. People with gaming issues play games instead of doing other things, which means they miss out on other opportunities in life, real-world social interaction, and important responsibilities. They often feel unable to stop gaming and can experience negative moods when they’re unable to play, like irritability, sadness, and boredom.

How do gaming and gambling overlap?

Gambling involves betting or staking money where the outcome is uncertain. In contrast, gaming doesn’t traditionally involve money. But online games increasingly include features that look and feel like gambling.

It's often quite hard to figure out what is gaming and what is gambling. Take a look at some of the games that have elements of gambling.

Social casino games.

Simulated gambling games closely resemble traditional gambling activities, like blackjack or poker machines. Some do not require payment to play, or provide real-money payouts and prizes. Other games, like social casino games, allow players to purchase in-game virtual currency with real money to pay for upgrades and increase game time.

Skin gambling.

Some games allow players to purchase virtual goods using real money. Some of these goods can be used only within the game and some of them can be traded among players or sold for cash. An example of these goods are skins, which are virtual items that can change the appearance of avatars. Skin gambling is not yet regulated as gambling in Australia.

Loot box purchasing.

Some games feature loot boxes, which players can either earn through gameplay or purchase using real money. Loot boxes are virtual treasure chests that can be opened in a game, containing random items that can help players advance in the game (e.g. weapons) or be used for cosmetic reasons (e.g. skins). Some of these items can be used only in the game but some can be traded among players or sold for cash. Loot box purchasing is not yet regulated as gambling in Australia.

Fantasy sports.

Fantasy sports (including the faster-paced daily fantasy sports) are structured online competitions in which participants compete by assembling a virtual team of players of a professional sport. The outcomes are decided by the real-life individual performances of each team member. Fantasy sports may require players to deposit money into a pot that is awarded to the winner of the competition. Fantasy sports are regulated as gambling in Australia, with many operators licenced in the Northern Territory.

E-sports gambling.

E-sports are competitions between skilled gamers or gaming teams who play for money and prizes. E-sport tournaments can attract millions of viewers online, or live in-venue, and it is possible to place bets on the outcome. In Australia, betting on e-sports is regulated as gambling, with e-sports betting now available from most services that offer sports or race betting.

These online gaming activities are distinct from other gambling activities that are provided on a digital device with an internet connection. See Online Gambling for more information.

“Loot boxes in games are similar to gambling, since players invest time and money obtaining them, and there’s a thrill around the possibility of gaining a rare and valuable reward.” – Associate Professor Alex Russell, CQU

The NSW Youth Gambling Study 2020 found that around 40% of young people aged between 12 and 17 play games that have gambling components. The Second National Study of Interactive Gambling in Australia suggests these games are also played by adults, with 0.5% of adults gambling on skins, 2.7% of adults purchasing loot boxes, 0.6% betting on fantasy sports, and 0.6% betting on e-sports.

Who is most at risk of developing gaming problems?

Research shows that young males are most likely to develop problems with gaming. Other factors associated with the development of gaming problems include longer time spent playing games, higher frequency of playing games, and playing certain types of games like massive multiplayer online role-playing games, first person shooters, fighting games and real time strategy games. Problems with peers, lower educational attainment, social skills, and mental health are also consistently associated with the development of excessive gaming. Playing games with gambling components is also most popular with young males. Most young adults who play these games report that they started playing from the age of 10 years and that they most often play at home.

What can you do?

There are lots of things you can do to protect yourself from the risks of gaming and their in-game gambling features.

Monitor your gaming.

Keeping track of your gaming, including how often you play games, how long you play them for, and the money you spend on in-game purchases, is an important first step.

Learn about the risks.

You will have a better idea of whether your gaming is of concern if you learn more about gaming, as well as the risks involved in gaming and in-game features like loot boxes.

Play when there are other people in the same room.

Even if you play games with other people online, it’s a good idea to have people around you while you play. This way, you can keep track of how much time and money you’re spending on the game. The people around you can also remind you to take a break when you’ve been playing for a while.

Participate in other activities.

Do things other than looking at screens all day. You need a balance between screen time and other activities. It’s important to make sure you’re also doing other activities you enjoy, like sport, art, hanging out with friends, and getting outside.

Limit alcohol or drugs while gaming.

Try to avoid drinking alcohol or using drugs while you’re gaming. When you're under the influence, you might be more likely to play for longer and make impulsive purchases within the game.

Take a break.

Step back from the game before you make an impulsive purchase in the game. Give yourself some time to think about the purchase and decide whether it’s something you really want or need.

Talk to someone if you’re worried.

If you're worried about your gaming, it's a good idea to talk to someone about it. You can reach out to your friends or family members, or you can seek help from a counsellor. They can offer support and advice on how to manage your gaming in a healthy way.

What can you do?

Parents and other adults can help protect people from the risks of gaming and their in-game gambling features.

Monitor their gaming.

Supervising the person’s gaming, including how often they play games, how long they play them for, and the money spent on in-game purchases, is an important first step.

Learn about the risks.

You will have a better idea of whether someone’s gaming is of concern if you learn more about gaming, as well as the risks involved in gaming and in-game features like loot boxes.

Play games with your kids.

Playing games with your kids can be a great way to spend quality time together and also allows you to monitor the games they're playing. By playing the games yourself, you can see if there are any features related to gambling, such as loot boxes or simulated casino games. You can also keep an eye on how much time your kids are spending playing games and remind them to take a break if necessary. It's a good idea to only allow gaming in common areas of your home where you can supervise their gaming.

Encourage other activities.

Encourage young people to do things other than looking at screens all day. They need to find a balance between using screens and doing other fun activities they like, such as playing sports, creating art, spending time with friends, and going outside.

Reflect on your own attitudes.

As a parent or adult, your attitudes can greatly influence the attitudes of children and young people. If you believe that gaming is harmless and don't set any rules around it, it can normalise excessive gaming and increase the use of gambling-like features in games. Take the time to think about the messages you're sending about gaming and consider setting reasonable limits and boundaries around gaming for yourself and the young people in your life.

Talk about gaming and gambling.

Having open discussions about gaming and gambling with young people is important. When relevant opportunities arise, ask them what they think about gambling features showing up in the games they play. Focus on educating them about the risks and consequences associated with these features rather than simply telling them not to use them. Find ways to demonstrate how gaming can be risky and help them to understand the potential consequences of engaging in gambling-like features. By having these conversations, you can help young people make informed decisions about their gaming and prevent them from developing harmful habits.

Set boundaries for screen time.

The South Australian Digital Youth Survey shows that secondary school students are on the internet more than nine hours a day. Young people need a balance between using screens and doing other fun things they like, such as playing sports, creating art, spending time with friends, and going outside.

Encourage them to take a break.

Encourage young people to step back from the game before they make an impulsive purchase in the game. This can give themselves some time to think about the purchase and decide whether it’s something they really want or need.

Activate parental controls.

Many parents have unexpectedly received big bills for their children’s in-app purchases in online games. Avoid in-app purchases and other content by turning on parent controls on your devices (mobile phones, tablets, laptops), TVs, gaming consoles (like PlayStation, Xbox), and web browsers (like Google Chrome, Safari, Edge).

Talk to someone if you’re worried.

It can be helpful to talk to your friends, family members, or a counsellor if you’re concerned about someone else’s gaming.

What can you do?

Teachers, school counsellors, youth workers, health professionals and other professionals can help protect people from the risks of gaming and their in-game gambling features.

Monitor their gaming.

Asking the person or parent to monitor the gaming, including how often they play games, how long they play them for, and the money spent on in-game purchases, is an important first step.

Learn about the risks.

You will have a better idea of whether someone’s gaming is of concern if you learn more about gaming, as well as the risks involved in gaming and in-game features like loot boxes.

Advise parents to play games with their kids.

Playing games with their kids can be a great way to spend quality time together and also allows them to monitor the games their kids are playing. By playing the games themselves, they can see if there are any features related to gambling, such as loot boxes or simulated casino games. They can also keep an eye on how much time their kids are spending playing games and remind them to take a break if necessary. It's a good idea to only allow gaming in common areas of people’s home where parents can supervise the gaming of their kids.

Encourage other activities.

Encourage young people to do things other than looking at screens all day. They need to find a balance between using screens and doing other fun activities they like, such as playing sports, creating art, spending time with friends, and going outside.

Talk about gaming and gambling.

As a teacher, youth worker or health professional, having open discussions with young people about gaming and gambling can be helpful. Take advantage of relevant opportunities to ask them about their thoughts on gambling features in the games they play. Instead of simply telling them not to use these features, focus on educating them about the risks and potential consequences associated with them. Find ways to demonstrate how gaming can be risky and help young people understand how engaging in gambling-like features can lead to harmful habits. By having these conversations, you can help young people make informed decisions about their gaming and prevent them from developing harmful habits.

Encourage parents to set boundaries for screen time.

The South Australian Digital Youth Survey shows that secondary school students are on the internet more than nine hours a day. Young people need a balance between using screens and doing other fun things they like, such as playing sports, creating art, spending time with friends, and going outside.

Encourage the limiting of alcohol or drugs while gaming.

Being under the influence of alcohol or drugs while a person is gaming can increase the likelihood that they’ll impulsively make in-game purchases.

Encourage them to take a break.

Encourage young people to step back from the game before they make an impulsive purchase in the game. This can give themselves some time to think about the purchase and decide whether it’s something they really want or need.

Encourage parents to activate parental controls.

Many parents have unexpectedly received big bills for their children’s in-app purchases in online games. Have parents avoid in-app purchases and other content by turning on parent controls on their devices (mobile phones, tablets, laptops), TVs, gaming consoles (like PlayStation, Xbox), and web browsers (like Google Chrome, Safari, Edge).

Do you want more help?

For more information about online gaming and how to protect yourself while you’re gaming, check out our information on Online Protection For Gambling or the information from the Australian eSafety Commission.

To learn more about gaming, you can start an online chat with us or call the Gambling Helpline on 1800 858 858 – free, confidential, 24 hours a day, 7 days a week. These services are available to support anyone affected by gambling harm, including family members or friends.

Do you want more help?

For more information about online gaming and how to protect family members or friends while they’re gaming, check out our information on Online Protection For Gambling or the information from the Australian eSafety Commission.

To learn more about gaming, you or your family member or friend can start an online chat with us or call the Gambling Helpline on 1800 858 858 – free, confidential, 24 hours a day, 7 days a week.

These services are available to support anyone affected by gambling harm, including family members or friends like you. It’s not only the person who gambles that can be affected, but the people close to them too. It’s important to take care of yourself when you’re supporting someone else. Check out the family and friends section in our peer support community to connect with people who understand.

Do you want more help?

For more information about online gaming and how to protect people while they’re gaming, check out our information on Online Protection For Gambling or the information from the Australian eSafety Commission.

To learn more about gaming, you or the person you’re working with can start an online chat with us or call the Gambling Helpline on 1800 858 858 – free, confidential, 24 hours a day, 7 days a week.

These services are available to support anyone affected by gambling harm, including family members, friends, and professionals like you. It can be hard for professionals to support people with gambling issues. To learn more about how you can help, go to our section on How Professionals Can Help.

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