Edge Hill University to lead near million pound study on how gambling-style gaming features effect children

A Lancashire university is fronting a near million pound project looking into the impact of gambling-style gaming features on children.

Edge Hill University’s Department of Psychology has been awarded just over £900,000 to lead a major three-year study exploring how gambling-like features in video games influence the development of primary school-aged children.

With over 90% of UK children aged between five and 11 playing video games, and one-in- three purchasing in-game items, spending an average of £26 per month—understanding the commercial pressures within digital play has never been more vital says the university.

Funded by the Economic and Social Research Council (ESRC), the project will be led by Dr John Shaw, Senior Lecturer in Psychology at Edge Hill.

The team will collaborate closely with leading charities including YGam, Internet Matters, and ADHD UK.

Dr John Shaw said: “Coercive pressure is often exerted on children to engage with microtransactions through time-limited availability, rarity and the social desirability of virtual items. Crucially, loot boxes share psychological similarities with gambling and are linked with mental health difficulties in young people.

“The risks posed by these features may be particularly acute for neurodivergent children, including those with ADHD and autism, who often spend more time playing video games. Generating this knowledge is essential to safeguard children, protect vulnerable groups and promote digital literacy for families navigating increasingly commercialised gaming environments.”

The study focuses on "microtransactions" and "loot boxes", features where players exchange real-world currency for randomised digital rewards or virtual items. Because loot boxes share psychological and mechanistic similarities with traditional gambling, they have become a major public health concern, linked to potential mental health difficulties in children and adolescents.

Despite widespread concern, previous research has yet to fully determine how engagement with loot boxes develops over time, how they impact broader psychological development, or which children are most at risk.

Jay Cullen, Dean of the Faculty of Arts and Sciences at Edge Hill University, said: “This significant ESRC funding reflects the vital real-world impact of our research community. Understanding how commercial gaming mechanics affect young minds is a pressing societal challenge.

“I am proud that Dr Shaw and his team are leading this vital cross-university collaboration. Their findings will provide families, educators and policymakers with the evidence needed to foster safer, healthier digital environments for children.”

The research is due to officially start in January 2027.

The findings of the three-year study will be used to develop practical resources to support healthy gaming habits for children and caregivers, while also generating evidence-based recommendations to inform future policy and regulation surrounding loot boxes.

To find out more about studying Psychology at Edge Hill University, check out their website, or come along to their next Open Days on Saturday, October 17 or Saturday, November 21.