• Video Game Gambling

    From Spalls Hurgenson@21:1/5 to All on Mon Nov 7 18:54:36 2022
    So, a link to an interesting video discussing the continued problem of
    loot-box inspired gambling (and specifically, Valve's role in the
    problem). https://www.youtube.com/watch?v=eMmNy11Mn7g

    Well, I thought it was interesting, but I enjoy reading about the game
    industry as much (possibly more at this point) as I do about the games themselves. It's 36 minutes, so it's not too long, although it's
    apparently done by a single guy so I can't verify its accuracy.

    But it raises some interesting points about the problem of lootboxes
    and how they lead to gambling. It's not just that the lootboxes
    themselves are, in essence, digital slot machines. Rather, the article
    points out that the 'winnings' of these lootboxes can then be traded -
    to third-party websites in exchange for further attempts at the
    slot-machine. And since this occurs outside of Valve's ecosystem,
    there's absolutely no control or moderation. The end result is all the corruption and scumminess you'd expect, and most of it aimed at kids.

    I - probably like most people here - was aware of the problem, but
    unaware of how big it had grown, with some third-party websites
    earning billions of US dollars. And while Valve is not directly
    responsible, it enables these websites, partners with them, and
    profits from that partnership. Valve frequently claims it is powerless
    to stop it, and anyway, there's no direct connection between the two ecosystems, it could easily end it all by simply disabling the API
    that allows the websites to access players inventories (thus keeping
    items - and money - inside Steam). Yet they don't.

    Regardless of Valve's complicity, the video does explain why games
    like "Counterstrike:GO" and "Team Fortress 2" perennially remain on
    top of the most-active multiplayer games list. I've never understood
    those title's continued popularity, and that's because I was judging
    their success by the games themselves. But the gameplay is almost
    incidental; they remain popular because they are the source of the
    lootboxes and the cosmetics that are used as 'chips' on these gambling
    sites. It's why people keep buying (and rebuying, if they get banned)
    the same game. The fans don't care as much about the mechanics as
    using it as a source of money and to get their next gambling-inspired
    dopamine rush.

    It also points out the source of some of Valve's extraordinary wealth;
    it isn't just because they act as middlemen and get a cut from the
    sale of every game. They get $2.50 every time a lootbox is opened, and
    a 5-10% cut out of the sale of every cosmetic (whether it's a digital
    hat or skin for a shotgun, or whatever). Valve has money to waste
    because it's making bank off of people's (often teen's) gambling
    addictions.

    Of course, this is a single-sourced viewpoint of the problem, so take
    it all with a grain of salt. Still, like I said, I thought it was
    interesting.

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From JAB@21:1/5 to Spalls Hurgenson on Tue Nov 8 11:17:31 2022
    On 07/11/2022 23:54, Spalls Hurgenson wrote:

    So, a link to an interesting video discussing the continued problem of loot-box inspired gambling (and specifically, Valve's role in the
    problem). https://www.youtube.com/watch?v=eMmNy11Mn7g

    Well, I thought it was interesting, but I enjoy reading about the game industry as much (possibly more at this point) as I do about the games themselves. It's 36 minutes, so it's not too long, although it's
    apparently done by a single guy so I can't verify its accuracy.

    But it raises some interesting points about the problem of lootboxes
    and how they lead to gambling. It's not just that the lootboxes
    themselves are, in essence, digital slot machines. Rather, the article
    points out that the 'winnings' of these lootboxes can then be traded -
    to third-party websites in exchange for further attempts at the
    slot-machine. And since this occurs outside of Valve's ecosystem,
    there's absolutely no control or moderation. The end result is all the corruption and scumminess you'd expect, and most of it aimed at kids.

    I - probably like most people here - was aware of the problem, but
    unaware of how big it had grown, with some third-party websites
    earning billions of US dollars. And while Valve is not directly
    responsible, it enables these websites, partners with them, and
    profits from that partnership. Valve frequently claims it is powerless
    to stop it, and anyway, there's no direct connection between the two ecosystems, it could easily end it all by simply disabling the API
    that allows the websites to access players inventories (thus keeping
    items - and money - inside Steam). Yet they don't.

    Regardless of Valve's complicity, the video does explain why games
    like "Counterstrike:GO" and "Team Fortress 2" perennially remain on
    top of the most-active multiplayer games list. I've never understood
    those title's continued popularity, and that's because I was judging
    their success by the games themselves. But the gameplay is almost
    incidental; they remain popular because they are the source of the
    lootboxes and the cosmetics that are used as 'chips' on these gambling
    sites. It's why people keep buying (and rebuying, if they get banned)
    the same game. The fans don't care as much about the mechanics as
    using it as a source of money and to get their next gambling-inspired dopamine rush.

    It also points out the source of some of Valve's extraordinary wealth;
    it isn't just because they act as middlemen and get a cut from the
    sale of every game. They get $2.50 every time a lootbox is opened, and
    a 5-10% cut out of the sale of every cosmetic (whether it's a digital
    hat or skin for a shotgun, or whatever). Valve has money to waste
    because it's making bank off of people's (often teen's) gambling
    addictions.

    Of course, this is a single-sourced viewpoint of the problem, so take
    it all with a grain of salt. Still, like I said, I thought it was interesting.


    Yeh, it's pretty shitty behaviour from Valve especially as it would seem
    quite simple for them to be more proactive in preventing these sites
    from functioning. It also certainly feels that they are skirting the
    grey areas of the law in regards to gambling as in the UK* and other
    countries the sticking point of whether it's gambling is that you can't
    'cash out' on the contents of a lootbox.

    As an aside, I did think I recognised the presenter and then thought oh
    I occasional watch them for their boardgame reviews.

    *Interesting enough we had a government select committee look into the lootboxes (sorry surprise mechanics) issue for two years and their recommendation was that they had enough of the elements of gambling that
    the law should be changed to cover them as such. Our government's
    response, we need to go back to the gaming companies to see what they
    think.

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From Spalls Hurgenson@21:1/5 to JAB on Tue Nov 8 13:59:10 2022
    On Tue, 8 Nov 2022 11:17:31 +0000, JAB <noway@nochance.com> wrote:


    Yeh, it's pretty shitty behaviour from Valve especially as it would seem >quite simple for them to be more proactive in preventing these sites
    from functioning. It also certainly feels that they are skirting the
    grey areas of the law in regards to gambling as in the UK* and other >countries the sticking point of whether it's gambling is that you can't
    'cash out' on the contents of a lootbox.

    As an aside, I did think I recognised the presenter and then thought oh
    I occasional watch them for their boardgame reviews.

    His video seemed quite professional and well researched, but I wasn't
    familiar with him, and it's always wiser to take news you hear from
    the Internet with a grain of salt. I don't doubt any of his stated
    facts, but can't attest to his conclusions. That's not to say he's
    being inaccurate, just that I can't vouch for the news. Such is the
    world we live in today.

    *Interesting enough we had a government select committee look into the >lootboxes (sorry surprise mechanics) issue for two years and their >recommendation was that they had enough of the elements of gambling that
    the law should be changed to cover them as such. Our government's
    response, we need to go back to the gaming companies to see what they
    think.

    The topic comes up every now and again but I don't think most people
    are aware of how big the industry has become. I mean, when I hear
    lootboxes equated to gambling, I think 'sure', because the randomness
    of the lootbox is akin to a slot-machine. But I was awestruck at how
    much further the industry has grown, where the winnings from those
    lootboxes are then used as chips in third-party websites that both
    purposely distance themselves from cash (to make it easier to lose
    without feeling you're actually losing your shirt), and how they use a
    format designed to be attractive to teens

    (not that this should entirely be a "think about the children!" issue,
    but these sites are focusing on them as their primary audience)

    It's beyond "a sorta gambling mechanic built into games" and has
    become an out-and-out mechanic that just happens to use game cosmetics
    as the chips for their gambling machines that - for a variety of
    reasons - is completely unregulated. So while I've little sympathy for
    the lawmakers, I do have some understanding for their slowness to
    respond. Aside from the usual "old people don't understand video
    games" (or "bureaucrats don't understand), things are changing quite
    quickly. I'd like to believe I have at least a little understanding of
    the industry, but even I was taken aback by its scale. But perhaps I'm
    just out of touch.

    Of course, Valve isn't the only one to benefit from this - I'm sure EA
    has similar problems - so arguably it's unfair to 'pick' on them
    alone. Still, Valve does benefit to some degree from its reputation as
    being 'for the gamer' more than its competitors, so this transparency
    into this aspect of their business was welcome.

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From Dimensional Traveler@21:1/5 to Spalls Hurgenson on Tue Nov 8 13:09:37 2022
    On 11/8/2022 10:59 AM, Spalls Hurgenson wrote:
    On Tue, 8 Nov 2022 11:17:31 +0000, JAB <noway@nochance.com> wrote:


    Yeh, it's pretty shitty behaviour from Valve especially as it would seem
    quite simple for them to be more proactive in preventing these sites
    from functioning. It also certainly feels that they are skirting the
    grey areas of the law in regards to gambling as in the UK* and other
    countries the sticking point of whether it's gambling is that you can't
    'cash out' on the contents of a lootbox.

    As an aside, I did think I recognised the presenter and then thought oh
    I occasional watch them for their boardgame reviews.

    His video seemed quite professional and well researched, but I wasn't familiar with him, and it's always wiser to take news you hear from
    the Internet with a grain of salt.

    Shirley you meant "with a pound of salt" there....

    --
    I've done good in this world. Now I'm tired and just want to be a cranky
    dirty old man.

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From JAB@21:1/5 to Spalls Hurgenson on Thu Nov 10 10:28:15 2022
    On 08/11/2022 18:59, Spalls Hurgenson wrote:
    On Tue, 8 Nov 2022 11:17:31 +0000, JAB <noway@nochance.com> wrote:


    Yeh, it's pretty shitty behaviour from Valve especially as it would seem
    quite simple for them to be more proactive in preventing these sites
    from functioning. It also certainly feels that they are skirting the
    grey areas of the law in regards to gambling as in the UK* and other
    countries the sticking point of whether it's gambling is that you can't
    'cash out' on the contents of a lootbox.

    As an aside, I did think I recognised the presenter and then thought oh
    I occasional watch them for their boardgame reviews.

    His video seemed quite professional and well researched, but I wasn't familiar with him, and it's always wiser to take news you hear from
    the Internet with a grain of salt. I don't doubt any of his stated
    facts, but can't attest to his conclusions. That's not to say he's
    being inaccurate, just that I can't vouch for the news. Such is the
    world we live in today.


    The internet is a great resource but it's also a complete minefield when
    it comes to misinformation and the one I really don't like opinion
    dressed up as news. Generally I employ the smell test of does what's
    being said sound plausible. So to take the video you linked to, I think
    the hard facts are probably correct but some of the conclusions - not so
    sure about that.

    The real problem I have though is the amount of people who seem to take
    their news source from something that read on Facebook and 'the truth'
    is based more on someone wanting it to be true than whether it is
    actually true.

    *Interesting enough we had a government select committee look into the
    lootboxes (sorry surprise mechanics) issue for two years and their
    recommendation was that they had enough of the elements of gambling that
    the law should be changed to cover them as such. Our government's
    response, we need to go back to the gaming companies to see what they
    think.

    The topic comes up every now and again but I don't think most people
    are aware of how big the industry has become. I mean, when I hear
    lootboxes equated to gambling, I think 'sure', because the randomness
    of the lootbox is akin to a slot-machine. But I was awestruck at how
    much further the industry has grown, where the winnings from those
    lootboxes are then used as chips in third-party websites that both
    purposely distance themselves from cash (to make it easier to lose
    without feeling you're actually losing your shirt), and how they use a
    format designed to be attractive to teens

    (not that this should entirely be a "think about the children!" issue,
    but these sites are focusing on them as their primary audience)


    I knew it still went on but I was surprised, like you, by the scale of it.

    It's beyond "a sorta gambling mechanic built into games" and has
    become an out-and-out mechanic that just happens to use game cosmetics
    as the chips for their gambling machines that - for a variety of
    reasons - is completely unregulated. So while I've little sympathy for
    the lawmakers, I do have some understanding for their slowness to
    respond. Aside from the usual "old people don't understand video
    games" (or "bureaucrats don't understand), things are changing quite
    quickly. I'd like to believe I have at least a little understanding of
    the industry, but even I was taken aback by its scale. But perhaps I'm
    just out of touch.

    Of course, Valve isn't the only one to benefit from this - I'm sure EA
    has similar problems - so arguably it's unfair to 'pick' on them
    alone. Still, Valve does benefit to some degree from its reputation as
    being 'for the gamer' more than its competitors, so this transparency
    into this aspect of their business was welcome.


    The impression I get in part is that the people who actually have the
    power to change the law are relatively out of touch with what goes in
    some games. Everyone knows that gambling can be bad so needs to be
    regulated but gambling is going down the bookies to bet on a horse not
    what goes on in games, there can't be gambling can there as they are
    just games?

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From Spalls Hurgenson@21:1/5 to JAB on Thu Nov 10 12:52:11 2022
    On Thu, 10 Nov 2022 10:28:15 +0000, JAB wrote:


    The internet is a great resource but it's also a complete minefield when
    it comes to misinformation and the one I really don't like opinion
    dressed up as news. Generally I employ the smell test of does what's
    being said sound plausible. So to take the video you linked to, I think
    the hard facts are probably correct but some of the conclusions - not so
    sure about that.

    We're more or less on the same wavelength on this topic, I think. At
    this point we seem to just be repeating each other. Not that will stop
    me from repeating what you said. I have a reputation for loquacity
    (and being sesquipedalian) that I need to uphold ;-)

    In truth, as eye-opening as this video was, I'm much more interested
    in the next video that he teased throughout this one, where he reports
    on the inner workings of Valve as told to him by a number of employees
    there. He gave some hints to it in the gambling video (for example, a
    key 'rule' of working there is never to create anything that will
    cause more work for somebody else, unless they've agreed to it
    beforehand. Another example is that there's a very libertarian bent to
    Valve's policies and ethos) and we've had some clues from previous
    reporting by other agencies. Still, on the whole the 'how' of Valve's development and business processes has remained very black-box to
    anyone outside it.

    Valve has a general reputation of being 'good for PC gaming', but it
    is possible it only has that because we don't know much about what it
    is doing. Epic Game's has been a lot more transparent with its errors;
    Valve is something of a black hole.

    Hopefully I don't miss out (or just forget about) the next video. I'm
    really quite interested in seeing it. I'll likely post the url to that
    one here as well.

    The real problem I have though is the amount of people who seem to take
    their news source from something that read on Facebook and 'the truth'
    is based more on someone wanting it to be true than whether it is
    actually true.

    I think that if your news is sourced from Facebook, you can probably
    assume it is inaccurate at best, or outright false at worse. Even
    without any connivance on the part of its administrators, the whole
    place was created to pass along rumors, memes and gossip - largely for
    their entertainment value - with accuracy being not even an
    afterthought. ;-)

    The impression I get in part is that the people who actually have the
    power to change the law are relatively out of touch with what goes in
    some games. Everyone knows that gambling can be bad so needs to be
    regulated but gambling is going down the bookies to bet on a horse not
    what goes on in games, there can't be gambling can there as they are
    just games?


    Just my point. We're all - I'd like to think - reasonably intelligent
    people who pay attention to the PC gaming industry as a whole. Sure,
    we might be slightly older than the average and don't dive as deeply
    into more kid-oriented titles like "Roblox" or "Fortnite", but we're
    generally aware of them and how they work. Yet despite all of this, I
    wouldn't be too surprised if everyone here had no idea as to the
    extent of gambling's influence on some games and companies. And if
    long-time, hard-core hobbyists such as ourselves don't know, how can
    we expect casual gamers - much less outsiders like Politicians - to
    understand the scale and scope of the problem.

    Worse, given that much of it is targeted towards teens /and/ is
    digital, the pace at which things change is accelerated. So even when
    the government does get a handle on the problem, it's a problem that's
    five or ten years out of date, and the industry has already found
    loopholes before the rules are even written, much less tested and
    enforced.

    Unfortunately, I don't have a solution either. Well, I do - Valve and
    other companies could outright prevent the trading of items for cash
    outside their ecosystem by changing their APIs - but that would hurt
    their bottom lines, so I don't expect that to happen.

    Still, the first thing necessary to fix a problem is to become aware
    of it, so I'm grateful to the video. Hopefully it will be followed up
    by other journalists so some pressure is put onto both lawmakers and
    the industry.

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)