The Rise of Blind Boxes and Concerns Over Gambling Links

Australia is facing growing calls to regulate blind boxes, sealed packages containing mystery toys or figures, as experts raise concerns about their potential link to gambling. Driven by the popularity of brands like Pop Mart and viral products such as Labubu and Smiskis, the blind box industry has become a billion-dollar market, with consumers spending significant amounts of money in pursuit of coveted items.

What are Blind Boxes?

Blind boxes offer a unique appeal: the excitement of not knowing which item is inside. Buyers do not grasp which figure or toy they will receive until they open the package. This element of surprise has fueled a surge in popularity, particularly among collectors and enthusiasts.

Gambling Concerns

The Alliance for Gambling Reform argues that blind boxes employ tactics similar to those used by the gambling industry. Spokesperson Mark Kempster stated that purchasing an item with an unknown outcome is akin to gambling, and that this practice extends to trading cards as well. 9news.com.au reports on these concerns.

Singapore’s Gambling Regulatory Authority has already taken steps to address these risks, announcing plans to mitigate the gambling risks posed by blind boxes, particularly for young people. Cecilia Chu, a board member of the authority, highlighted the potential for early exposure to gambling through these products in an opinion piece published in The Straits Times.

The Psychology Behind the Appeal

QUT consumer behavioural expert Gary Mortimer explains that buyers experience a “powerful rush of dopamine” when opening a blind box, driven by anticipation and the joy of discovery. This sensation is comparable to the excitement of opening birthday or Christmas presents. Mortimer connects this rush to Burrhus Skinner’s theory of Operant Conditioning, specifically the concept of “variable ratio of reinforcement,” or reward uncertainty. He notes that unpredictable rewards are more effective at sustaining behaviour than predictable ones.

ANZ analysis suggests that unpredictability drives higher sales, as buyers continue purchasing boxes in hopes of obtaining the desired item. The bank found that consumers may feel compelled to continue buying after initial purchases, believing they are closer to finding the item they aim for.

Popular Brands and Products in Australia

Several brands are prominent in the Australian blind box market. POP MART Australia offers a range of designer toys, including the popular Labubu figures from The Monsters series by Kasing Lung. Labubu Pop Mart Australia specializes in Labubu dolls, plush toys, and blind boxes. Other popular collections include Hirono, Dimoo, and Cry Baby figures. Recent releases include The Monsters x Hello Kitty and Friends Series, featuring Labubu characters paired with Hello Kitty, Kuromi, Cinnamoroll, and other Sanrio favorites. These vinyl plush pendants are available for purchase at varying prices, such as AU$46.18 and AU$54.08.

Calls for Regulation and Education

Kempster advocates for Australia to implement education programs in schools to raise awareness among young people about the potential risks associated with blind boxes and other forms of gambling. He emphasizes the importance of understanding the pitfalls of gambling and the potential issues that can arise from early exposure.