Hong Kong consumer watchdog urges tougher regulation to curb in-app purchasing tactics used by simulated gambling games
- Consumer Council tests six games and finds they use common set of tactics to attract continued play and spending on in-app purchases
- Tested games also failed to verify ages of players, despite being listed online as for adults only
Hong Kong’s consumer watchdog has urged authorities to improve legislation for virtual gambling games to prevent addiction after finding they often used tactics to entice players to make in-app purchases, with one related membership costing as much as HK$2 million (US$256,000).
The Consumer Council on Monday also said that all six of the games it tested failed to verify the ages of the players despite being listed online as for adults only. The lack of safeguards left them available to minors, with one psychologist warning that young people were especially vulnerable to becoming addicted.
“The council is of the view that the existing [Gambling] Ordinance is not fully effective in targeting a wide range of online gaming behaviours and businesses of a similar nature to gambling, including but not limited to simulated gambling games,” the watchdog said.
Simulated gambling games adopt many of the characteristics of real-life betting, but do not allow wagering with real money. However, like many freemium games, players can use real money to purchase in-game currencies.
Existing legislation did not explicitly prohibit minors from gambling and liability was only applied to conditions attached to licences, the council said.
“[This is] not only ineffective in preventing underage persons from participating in online gaming and activities of a similar nature to gambling, but also inadequate in protecting relevant persons,” it said.
The watchdog tested six simulated gambling games available in the main app store for Apple and Android devices. They were Jackpot World, Golden HoYeah Slots, Full House Casino and three mahjong games that only had Chinese titles.
It found that the six games used a set of common tactics to attract continued play and spending on in-app purchases. These included offering prizes for logging into the game daily, leader boards and social functions incentivising players to invite friends, as well as in-app lottery-like systems such as loot boxes which provided lucky draw-type rewards.
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The watchdog said the price for in-app purchases could vary anywhere from HK$8 to more than HK$3,000.
However, in one mahjong game created by a Hong Kong-based developer, the watchdog found that players had to spend as much as HK$2.5 million to reach the highest tier of VIP membership.
The council found that six of the games failed to verify the ages of the players, allowing minors to easily access them.
The watchdog urged “prompt improvements” from operators, which it said “have not taken sufficient measures to prevent minors from partaking in simulated gambling games”.
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The developers for Full House Casino said: “The age restriction information in the terms of service has not been updated and will be revised in the near future.”
It also added that it had received certification related to its in-game lottery-like systems, but did not say which one.
The other five developers did not respond to inquiries, the watchdog said.
Dr Leung Chung-ming, a clinical psychologist quoted by the council, warned that “simulated gambling rewards” could easily cause players to become addicted to gambling, warning that minors were particularly susceptible.
“When teenagers know that many friends are playing a certain game, they may also try out the game as they value peer relationships and fear exclusion,” she said.
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While the Gambling Ordinance prohibits all forms of gambling unless there is an exemption, the council, citing legal experts’ opinions, said current offences were usually tied to a specific physical premises and might not be relevant for online activities.
The watchdog advised the government to look at other jurisdictions that had recently passed legislation targeting in-app purchases and other gambling-like features in video games in recent years.
The Home and Youth Affairs Bureau, which has oversight of gambling policy, said that whether simulated gambling games were in violation of the ordinance would depend on the “exact mode of operation” and would be looked at on a case-by-case basis.
“The Government will keep in view the situation in relation to ‘simulated gambling video games’ and take appropriate action as and when necessary,” the bureau added.
