Consumer watchdog wants tougher regulations on simulated gambling games

Hong Kong’s consumer watchdog called on authorities to review its regulation on online gaming, saying that the city’s existing Gambling Ordinance has failed to target a wide range of online gaming behaviors and businesses of a similar nature to gambling, including but not limited to simulated gambling games, also failing to prohibit minors from participating in gambling.

Between October and December 2023, the Consumer Council trialed six simulated gambling games from two widely-used app stores, including slot machine, poker, and mahjong, and obtained service information from their terms of service and websites.

It was found that most games adopted tactics to attract continued play and spending through regular login and play incentives, as well as various offers and paid services.

All these simulated gambling games did not verify the age of the players, showing a lack of gatekeeping, said the Council.

Meanwhile, the watchdog said all surveyed games featured paid lucky draws, loot boxes, scratch cards, lottery tickets and other in-game purchases, but not all of these purchases had their odds of winnings displayed.

In addition, two games claimed that their lucky draws included physical gifts such as smartphones and department store gift cards, but one game did not clearly spell out the terms and conditions and whether players needed to pay extra, which the Council described as “unsatisfactory arrangement.”

“On the surface, simulated gambling games seemingly do not involve real money gambling, but as they are of the same nature, quite a number of overseas studies found that players
participating in simulated gambling games for long periods might be inclined to normalize gambling behavior, which will ultimately lead to a higher probability of engaging in real money gambling, inducing problems such as obsession with and even addiction to gambling.

“As intellectually immature adolescent players are especially prone to psychological impact, the situation must not be overlooked.” The Council noted.