Juniper Research has released a new whitepaper focused on the industry being created by Loot Boxes and Skin Gambling, two things made famous by Counter Strike but quickly spreading throughout the industry as a whole.
“Juniper Research forecasts that loot boxes and skins gambling, two emerging gaming growth sectors, will reach a total spend of $50 billion by 2022, up from under $30 billion this year. Loot boxes are in-game packs which contain a random selection of items; while skins are in-game cosmetics which change the appearance of weapons or characters.”
Juniper also makes a statement on youth participation in the skin game and urges the UK government to begin a regulation process.
“A 2017 study by the Gambling Commission found that 11% of 11-16 year olds in the UK had placed bets with skins; meaning around 500,000 children under the age of 15 could be using skins for gambling. Juniper finds skin gambling risks being pushed underground; without further counter-measures, wagers will surpass $1 billion globally by 2022, a fifth of the global market seen prior to Steam’s interference.”
Regulation and child protection are serious subjects around the world when it comes to the current state of the skin industry. Paid random roll purchases (Loot Boxes) tied to games with a suggested rating below that of gambling age also share the current scrutiny and evaluation.
It will be interesting to see how countries handle these concerns differently as the space continues to grow into the billons.