Joseph Maceya,b, Juho Hamaria,b, Max Sjöblom, Maria Törhönenb a Centre of Excellence in Game Culture Studies, University of Turku, Finland. b Gamification Group, Tampere University, Finland. Recent years have seen increasing academic attention to the ways in which the convergence of video gaming and gambling creates novel activities, relationships, and business practices. The scale and pace of this convergence has been such that observers have referenced not only the gamification of gambling but, additionally, the gamblification of gaming. The phenomenon of esports, or competitive video game play, is the environment which is most obviously characterised by this process, combining as it does both novel forms of gamblified content and established gambling activities from the world of traditional sports. Given the concerns about the normalisation of gambling in young people there is a pressing need to investigate the ways in which the consumption of esports, as a gamblified media product, is associated with participation in gambling activities. The findings of this study highlight the importance of spectating esports as a predictor of involvement in gambling associated with esports, while also providing empirical evidence of under-age participation in gambling. Finally, it offers a snapshot of gamblified media consumption during a period of rapid change, serving both as a historical record and as a basis for comparison with subsequent developments in the field. Esports, Video Games, Gamblification, Gambling, Loot Boxes, Betting, Skins served to make gambling both more attractive and more easily accessible. Neither convergence nor gamblification are Recent work in the fields of gambling restricted to the medium of video games, studies and game studies has begun to address however, the impact of these phenomena on the the phenomenon of convergence, a situation in both the consumption of contemporary games which the two activities are becoming and their financial success is particularly progressively closer to one another 5,22,26,17. A strong44. Combined with the huge appeal of notable outcome has been to highlight the video games globally, these issues make video increasing use of gambling mechanics in games games a valuable and productive context in as a means of driving user engagement and, which to study convergence in general, and more controversially, monetisation. This has gamblification in particular. 25,13 Contemporary video games, however, are . not a homogeneous entity, with many diverse This ongoing process of convergence is one genres, business models, player communities, which produces not only new hybrid activities and modes of consumption present in the and media products, but new ways in which ecosystem. In order to effectively study the media is consumed; new relationships and consumption of gamblified media products channels of interaction between media, further specificity is required. It is in the producers and consumers are emerging12. The environment of esports where this trend for gamblification of video games has potentially 5th International GamiFIN Conference 2021 (GamiFIN 2021), April 7-10, 2021, Finland EMAIL: joseph.macey@tuni.fi (A1); juho.hamari@tuni.fi (A2); max.sjoblom@gmail.com (A3); maria.torhonen@tuni.fi (A4) ORCID: 0000-0002-9770-739X (A1); 0000-0002-6573-588X (A2); 0000-0002-0525-8153 (A3); 0000-0002-1741-6139 (A4) 2021 Copyright for this paper by its authors. Use permitted under Creative Commons License Attribution 4.0 International (CC BY 4.0). CEUR Workshop Proceedings (CEUR-WS.org) gamblification is most heavily present, In the same way that the practices combining as it does both new forms of surrounding traditional sports betting have been gamblified content associated with virtual found to exist in esports betting (see H1), it is items, but also the translation of established reasonable to expect that the betting habits and activities from the world of traditional sports. characteristics of esports bettors will reflect For example, gambling activities related to those of traditional sports bettors. For example, video games include both esports betting and games of skill, such as betting, have been found fantasy esports, alongside the paid opening of to be more strongly associated with males than loot boxes and the use of decorative items as with females36,29. Indeed, previous work has stakes in activities ranging from roulette to shown that engaged esports fans are more likely lotteries22,24. Furthermore, the gambling to be male22, and that those who consume online industry has established a significant presence esports favour games of skill over games of in both online and physical spaces, with many chance24,21; it is likely that this preference will companies sponsoring teams and tournaments also be observed in live esports attendees. while also advertising heavily in esports H2: Participation in both a) esports betting focused websites. Consequently, this research and b) fantasy esports will be positively is governed by the following question: correlated with: i) increased consumption of RQ: How is the consumption of esports esports; and ii) younger males. associated with participation in gambling The presence of both loot boxes and cosmetic activities directly connected to esports? items known as skins in the esports gambling This study provides a detailed examination ecosystem has been theorised as facilitating of the associations between spectating esports, under-age gambling as they enable access playing video games, and gambling behaviours. gambling activities without the need to employ It provides information regarding the behaviour traditional payment systems 10,27,24. These of consumers during the early period of virtual items are obtained through either gamblified media consumption, thereby playing video games, or through online allowing comparison with later, contemporary, marketplaces associated with specific games behaviours and practices. Establishing a and digital distribution platforms. In addition, historical record of a dynamic and ever- the increased visibility afforded to cosmetic changing environment is valuable as it provides items by esports has been thought to increase important context to later developments and their desirability, for example as a signifier of provides a snapshot of behaviours such as skins in-game status6,40. lotteries which were popular at the time but H3: Participation in a) skins lotteries, and b) have since all but disappeared. Finally, this is loot box opening, will be positively correlated one of the few empirical investigations in the with: i) increased consumption of video games; field of gamblification which includes minors, and ii) increased consumption of esports. addressing a gap in existing knowledge. Furthermore, iii) they will be negatively The ongoing convergence between gaming correlated with age. and gambling has given rise to environments which have been theorised as normalising Given the ubiquity of both gamblified participation in gambling5,15; furthermore, the content and consumption practices in the practice of utilising traditional sports as a esports ecosystem, there is a pressing need for vehicle for the promotion of gambling28 has detailed investigation of ways in which the been theorised as also being present within the consumption of esports, as a gamblified media more recently established field of esports20. product, is associated with participation in Previous work has shown that as engagement gambling activities. Investigating these with online esports grows, so too does associations allows specific features or participation in a range of gambling activities 22, practices to be identified which increase the it is expected that this relationship will also be likelihood of participating in gambling. Such present in those who attend live esports events. knowledge can help guide efforts to mitigate potential harms by providing empirical H1: That increased participation in gambling evidence to a range of stakeholders: developers connected to esports will be associated with and publishers will be able to understand the increased consumption of esports. results of their business approach; consumers will be informed about the potential notable digital presence where availability is ramifications of their choices; legislators and unrestricted by time of day or geographical regulators will be empowered to make location, while the ecosystem is served by informed judgements; and clinicians and many specialist sites and third-party operators. therapists will be aided by the identification of A factor which further increases ease of access, specific relationships between behaviours. and which serves to obscure the cost of By studying the relationships between the participation in gambling, is the use of virtual consumption of gamblified media products and items as stakes and prizes. participation in gambling activities in the Virtual items often take the form of cosmetic specific context of esports, this work will upgrades, or skins, which can be applied to produce knowledge which can be applied to -game characters or equipment, and both the wider field of video games and other which have varying degrees of rarity: the rarer forms of gamblified products and services. an item is, the more desirable it is and, therefore, the more it is worth. Acquiring sought after skins confers social rewards to the player, in the same way that other forms of gambling have been found to do34,4, increasing Increasing attention has been paid to the the attraction of gamblified content in which ways in which the activities of video gaming they are available as prizes. Indeed, in addition and gambling are converging with one another, to the chance of winning something, be it in- creating not only new hybrid activities, but also game rewards or financial rewards, games and new methods of interaction between games, gaming culture has been used to brand players, and companies. The scale and pace of gambling activities in order to appeal to players, this convergence has been such that observers for example by using imagery from games such have referenced not only the gamification of as CounterStrike: Global Offensive (CS:GO) in gambling3,19 but, more significantly, the simulated coin-flipping games 24. Finally, gamblification of gaming1,44. gambling mechanics have been incorporated into a range of game-based content and subsequently evolved, in parallel to that of products which, although not directly gamification. It was first used to describe the constituting gambling per se, drives player practice of utilising sports, and other cultural engagement with titles, resulting in increased products, as a vehicle for distributing and profitability for publishers16. promoting gambling in wider society28. The gamblification of games is, therefore, Subsequently, gamblification has been used to evident at two distinct levels: first in specific describe a range of practices that have evolved forms of gamblified content or activities as a result of the convergence of digital media. originating within the games themselves; and, Notable examples include: social media second, within the wider gaming culture in networks and social casino games 30; online which games themselves are the object of video games44,25; esports20,24; mobile gaming11; gambling, in this case the explicit act of and video streaming services 1. Gamblification, gambling is not an intended design feature therefore, is not just limited to video games, nor present within the game. even consumption practices associated with It is the phenomenon of esports which most games. However, it is in relation to games that succinctly encapsulates both the gamblification the techniques and practices of gamblification of contemporary video games, and of gaming are most widespread, and where the culture7,17. Esports is most easily understood as consequences are most keenly observed45,6. competitive video game play structured around Gamblification, therefore, is not simply the leagues and tournaments9. The organisation of addition of gambling activities to existing video game play along formal lines echoes that services or products, instead it incorporates a of traditional sporting competition, as such the range of practices centred around the principles emergence of sportsbook-style betting and, to a of uncertainty and reward; core components of lesser degree fantasy esports, is a predictable gambling, but not, necessarily, of gaming. and obvious development. Not only are Gamblified video games share many established industry operators offering esports characteristics of online gambling which reduce markets, they are a significant and visible barriers to participation: it has a significant and presence in the esports ecosystem, sponsoring teams and tournaments. Furthermore, a notable Data was collected at the large-scale LAN- majority of online sites offering news and event Assembly Summer 2016, between the discussion forums for esports fans display dates 4th and 7th of August 2016. The event significant amounts of material advertising originally focused on the demoscene computer gambling operators and cross-promotion of art subculture but has since expanded to include other gambling activities20,2. In addition, the gaming and eSports as a core component. streaming of gambling activities associated Survey participants were approached by the with video games and esports is a notable researchers and asked to fill in a survey related presence on streaming services20,23. to eSports, with the added incentive of being Perhaps the most (in)famous example of entered into a raffle for six gift certificates for gamblified content is the loot box, a catch-all the Steam webstore, each worth 50 euros. term denoting an in-game item which uses Respondents that chose to complete the survey random number generation (RNG) to distribute did so immediately at a table set up for this rewards to players24. Loot boxes, and other purpose. Information regarding the nature of gamblified content have been closely the research was provided in English and associated with esports due to their presence in Finnish, both verbally and in written form, and popular esports titles, notably CS:GO24. Indeed, researchers were present to provide any further the popular esports team Ninjas in Pyjamas information on demand. launched the 2013 update in which loot boxes The survey included items measuring a were first added to CS:GO41. Loot boxes have range of items related to both their behaviour at been linked to consumption patterns which the event itself and more general consumption mirror problematic gambling behaviour and practices related to video games and esports. In have been the subject of numerous addition, it included items measuring investigations by regulatory bodies, with some participation in a range of gambling activities ruling that they constitute a form of gambling24. and motivations for watching esports. The four Although loot boxes are not the only individual gambling activities included in the example of gamblificaiton present in survey were not an exhaustive list, but reflected contemporary video games, and gaming those directly associated with esports, betting culture, they serve to highlight the growing and fantasy esports, and with virtual items unease around the convergence of gaming and strongly associated with esports games, loot gambling. First, the scale of gamblified content boxes and skins. Questions recording average and consumption practices has led to concern weekly hours spent on an individual activity that gambling-like behaviours are being allowed free-form responses, while possible normalised among those who play and watch responses for frequency of participation ranged video games5. The comparative youth of this Participation in group, in regard to general society, is a potential individual gambling activities were recorded risk factor given the proven link between early via exposure to gambling and the subsequent In total, approximately 550 individuals were development of disordered gambling approached, of those approached an estimated behaviours later in life35,18. In addition, the use 50% agreed to complete the survey. Of the 281 of gambling, and gambling-like interactions, as returned surveys, 26 were found to be a means of increasing the monetisation of incomplete or to contain otherwise invalid players has been termed exploitative as responses giving a final dataset of 255 valid responses. decisions about purchases are negatively Both the frequency of gambling associated impacted16. These issues are further with esports games (a) and participation in compounded by the fact that these gamblified specific gambling activities (b) were cross- interactions are taking place within tabulated with measures of: demographic environments which are predominantly characteristics, the consumption of esports, and unregulated, and which are not subject to game play. Several cells had counts below 5, as independent scrutiny24. -squared14 order to determine predictive power and D is an asymmetric test, accordingly, frequency of gambling associated with esports (a) and individual gambling activities (b) were selected as the dependent variables for each cross- tabulation. Only one table was square (frequency of participation in gambling by frequency of watching esports online), in this -b is reported, for all other - rong relationship33 42 . All Approximately 13% of respondents reported analysis was performed using SPSS version 24. that this was the first time they had attended a live esports event, while the majority, 59%, reported having previously attended upto five live esports events. A total of 33% of respondents reported watching esports online once a week or more, with under 10% reporting The final data set was predominantly that they never watch esports online. A youthful, with approximately 85% of minority, 29%, reported watching esports respondents reporting being under the age of 30 online for an average of five or more hours per (Table 1); the youngest respondent was 12 week, of these five individuals, 2% of total years of age, while the oldest reported being 47. respondents, reported watching an average of In addition, 79% of respondents reported 25 hours or more per week. identifying as male (Table 2). These figures are In respect to gambling activities associated unsurprising given the nature of the event at with video games and esports, a majority of which data was gathered; young males have 64% reported never having participated in such previously been found to dominate attendance activities, while approximately 8% reported at both LANs and other computer culture events participating once a week or more often. Of such as live esports competitions 37,38. those who had participated in gambling Somewhat unsurprisingly, the majority of activities, the most popular individual activity respondents reported playing video games was found to be betting on esports matches or regularly, with 59% stating that they played 15 tournaments (31%), followed by loot box hours per week or more. Indeed, only two opening (22%), using skins lotteries (14%), and individuals, under 1% of the total respondents, playing fantasy esports (3%). These activities reported not playing games while 28% reported are not mutually exclusive, approximately 20% playing 30 hours per week or more. indicated participating in more than one activity, in varying combinations. Finally, of those who reported participating in gambling associated with video games and esports, less than 20% were over the age of 25. Indeed, the more frequent participation was associated with younger respondents: 60% of both monthly and weekly gamblers were under 18, while 50% of daily gamblers were under the age of 18. As several tests were performed in each cross-tabulation, results were subject to a family-wise error correction in order to control for type I errors. The Bonferroni method has statistically significant predictor of been criticised as resulting in increased chance participation in esports betting. However, the of type II errors due to the fact that it is an exact nature of the relationship is unclear as, overly conservative approach32,39. The after applying the Benjamini-Hochberg Benjamini-Hochberg procedure was chosen correction, the apparently large effect size preference to the Bonferroni method given that it balances power and parsimony43. All p-values of statistical significance. Neither of the other have been presented at the adjusted level. The primary area of interest was the statistically significant results. potential relationships between participation in Gender and frequency of watching esports gambling associated with esports and the online were found to be statistically significant consumption of both esports and video games. predictors of participation in skins lotteries, Only two items were found to have statistically with the effect size or gender being moderate significant relationships with participation in gambling activities: average weekly hours esports was found to have a large effect size spent watching esports online, and frequency of watching esports online. Both items were found to have strong effects, with average hours being .061) and to demonstrate a weak, positive notably larger than frequency of online Alongside participation in betting, paying to respectively). Similarly, both were found to open loot boxes was found to have four have moderately strong predictive power statistically significant predictors: number of live events attended, average weekly hours However, frequency of watching esports online spent watching esports online, frequency of was found to have a strong positive association watching esports online, and average weekly ile average hours spent watching hours spent playing digital games. All except esports online was found to have a moderately average weekly hours spent playing digital games were found to have strong effect sizes In regard to participation in esports betting, the following items were found to be respectively). Number of live events previously statistically significant predictors of attended was found to have weak predictive participation: age, gender, average weekly hours spent watching esports online, and frequency of watching esports online. Of these, remaining items (average weekly hours spent both age and frequency of watching online were watching esports online, frequency of watching found to esports online, and average weekly hours spent .5, and .343, respectively), while gender was playing digital games) all displayed moderate predictive power and moderately strong, V = .17). Age was found to have moderate = .148, .154, predictive power, and to have a strong negative - - .349, respectively). Gender was found to have low predictive power, and to have a moderate - - .113, respectively). Average weekly hours This research uses data collected at a watching esports online was found to have computer culture and esports event in August moderate predictive power, and to have a 2016 in order to examine the consumption of esports and associated gambling activities. moderately strong positive association Several statistically significant associations, of varying effect sizes, were observed in relation Finally, frequency of watching esports online was found to have moderately strong predictive to both general esports/video game-related power, and to have a strong positive association gambling and specific individual activities. In = 339, respectively). addition, this research demonstrated that under- Only one item, average weekly hours spent age individuals are a notable presence in playing digital games, was found to be a gambling associated with games and esports, thereby highlighting the importance of ensuring connection, one that goes beyond playing. such populations are not excluded from Participating in fantasy esports offers a channel research, despite being under the legal age. for engagement that can be accessed when The expectation that participation in playing is not practical, or even possible, such gambling activities directly connected to as at work or when travelling. esports would be positively correlated with Similar to H2b, as described above, analysis increased consumption of esports (H1) was of the data revealed results which were only partially supported as no statistically substantially different to the expectations of significant relationship was observed with H3a. Participation in skins lotteries was attendance at live events. This may be due to anticipated to be positively correlated with both the data being gathered at Assembly; although game play and esports consumption, and the event features esports as a core component, negatively correlated with age, however, it was it has features of a LAN event 38, as such the found to positively correlate with hours spent focus is more on participation than spectating. watching esports online and with males. It may It is possible that if data were gathered at a be that gender is a stronger predictor than age dedicated esports tournament, different results due to the fact that skins lotteries have been might be observed. most strongly associated with the game As with the first hypothesis, H2a was CS:GO24 a game with a predominantly, but not partially supported as all expected associations exclusively, male player base. The rationale were present except that of attending live underlying the hypothesised negative esports events, it is likely that this too is correlation between skins lotteries and age was explained by the context in which data was that younger players could access the game by gathered. It is worth noting that the item with using virtual items (skins) in place of real- the largest individual effect on participation in money stakes, unlike other forms of gambling. esports betting, among esports fans is age. However, it seems that the use of virtual items While the second largest predictor, watching as stakes does not influence the age profile of esports online, is explained by the fact that it is participants. The lack of statistically significant likely to serve as a channel for acquiring association with hours spent playing video information about players and teams, the strong games is likely explained by the fact that, association with age is less easy to explain although skins are items which are used within given that betting can be accessed with real- games, they can be obtained outside of the world currencies in addition to virtual items. game itself, either via online market places or Given the potential for disordered gambling purchasing and opening loot boxes outside of behaviours to develop as a result of early the game. Finally, the unexpected positive exposure35,18, this association is one which correlation between skins lotteries and requires closer study. watching esports online may be explained by Investigating the associations between the fact that watching esports competitions exposes spectators to a greater range of skins participation in fantasy esports (H2b) yielded than simply playing the game. Consequently, especially surprising results, as none of the spectators may be encouraged to try to obtain expected correlations were observed. Indeed, desirable, and therefore expensive, skins by only a single item was found to have a gambling rather than direct purchase. statistically significant relationship: average Once again, H3b was only partially weekly hours spent playing video games. It was supported with the expected positive anticipated that esports consumption habits correlations between loot box opening and both would be meaningful predictors given that online esports spectating and video game play individuals can obtain knowledge as a result of having been observed, however, expected watching esports content, as is the case in negative correlation with age not being traditional sports31. As this appears not to be the observed. It is noteworthy that neither of the case, it may be that those who play fantasy demographic measures were found to be esports may get their information from other statistically significant predictors of loot box sources, such as dedicated sites featuring news, opening, whereas all measures of media statistics etc. The association with game play consumption were positively correlated. may be due to a situation in which fans of a The significance of media consumption in given game seek to maintain an ongoing influencing participation in gambling associated with esports and video games is dedicated esports event, one in which activity is clear, with average hours spent spectating limited to spectating. esports online being a statistically significant A further limitation is that at the time at predictor in all cases except, somewhat which the date was gathered skins lotteries were paradoxically, fantasy esports. the most prevalent form of gambling using That spectating esports online is a virtual items, with contemporary estimates significant influence on participation in valuing the skins lottery market at gambling is likely due to the fact that spectating approximately $7.4bn8. However, late 2016 esports exposes viewers not only to the saw a series of scandals and negative publicity gamblified content present within games, but related to skins lotteries, including examples of also to other aspects. These additional rigged competitions and lawsuits targeting influencing factors include exposure to Valve10. Consequently, Valve acted to restrict gambling sponsors and references to gambling the transfer of skins between player accounts, and odds as part of the event commentary, in thereby hindering the effective functioning of addition to video content featuring gambling many third-party websites which hosted skins which is part of the wider esports mediascape23. lotteries. Participation in skins lotteries has This is particularly significant when significantly declined, yet skins are still used to considering that gamblified media have the access many gambling activities, as such this potential to encourage problematic work can serve as a basis for examining other consumption behaviours. Consequently, there activities which use virtual items as stakes. are implications for gamers, publishers, and In addition to future research investigating regulators. First, those publishers which seek to different forms of gambling connected to further user engagement and drive monetisation esports and video games, a further area through adding gamblified content or requiring specific attention is the role of promoting an adjacent esports scene must be streamed video content which showcases aware of the potential consequences. Any such gambling, such as loot box opening, crash approach much be carefully considered, and betting, or themed casino games. This responsibly enacted. unregulated content is often used in order to Second, consumers need to be aware of promote online gambling sites which use these gamblified environments and the virtual items, serving to both normalise relationships with increased participation in gambling and advertise gambling to vulnerable gambling. Such awareness can assist populations. Indeed, this research has consumers to make informed decisions, and to highlighted the prevalence of gambling among seek services which suit their needs and desires. young esports spectators, providing empirical Third, in order to be effective, any attempts evidence that under-age gambling is an to regulate the increasing gamblification of established practice in gaming and esports. media should not simply address individual activities but must consider wider consumption practices and surrounding cultures. Requiring service providers to implement programmes akin to responsible gambling initiatives, may be This study examines the relationships an appropriate approach. between the consumption of esports and The most significant limitation of this work participation in associated gambling activities relates to the fact that data was gathered at an in a sample of esports fans, offering insights event at which esports is a significant, but not into a range of context-specific activities: sole, focus; furthermore, Assembly is an event esports betting, fantasy esports, skins lotteries, which is centred upon participation, rather than and loot box opening. The findings of this work offer several contributions. First, it highlights spectating. However, of those attendees who participated in this research, 90% reported the importance of spectating esports online as a predictor of involvement in gambling spectating esports within the previous 12 months, demonstrating that the sample meets associated with esports. Second, it provides the needs of the research. With these issues in empirical evidence of under-age participation mind, a fruitful avenue for future research in gambling. Finally, it offers a snapshot of would be to gather data from attendees at a gamblified media consumption during a period of rapid change; functioning both as a historical record and as a basis for comparison with future developments in the field. paper on the World Health Organization ICD-11 Gaming Disorder proposal (Aarseth et al.). Journal of Behavioral Addictions 6 (3) (2017) 306-309. [12] H. Jenkins, Convergence Culture: Where This research was supported by a grant from Old and New Media Collide. 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