Australians spend about $4 billion a year on gaming, which is more than streaming services, films or music, however a regulation "black spot" means there's no way for anyone to report gaming harms.
The manipulative tactics, known as dark patterns, are not in every game but 95 per cent of players have encountered them at least once, according to a report from the Consumer Policy Research Centre and Monash University.
Some 46 per cent of gamers have suffered a financial loss while playing, including accidental purchases or paying more than they expected, while one in four shared more personal information than they intended.
"There are too many games out there that promise the joy that gaming should deliver, but 'bait and switch' players and end up costing them money, time, privacy and manipulating them," the research centre's chief executive Erin Turner told AAP.
"Parts of this industry are deliberately targeting children and using tactics to get them to play more and pay more, they're using tactics straight out of the gambling playbook."
Ms Turner, who is herself an avid gamer, highlighted concerning practices including the use of roulette wheels with cartoon characters instead of numbers, hidden in-game purchases, subscription traps and forcing players to buy game currency with real money.
The 'Playing the Player' report called for urgent action to introduce the regulation of games and create a digital ombudsman to investigate complaints because there is currently nowhere people can report harms.
"There are large black spots - holes - in our regulation when it comes to gaming and protection for people online," Ms Turner said.
"I don't think we've seen political focus on this issue yet, but there should be.
"The gaming sector is huge and the number of people being harmed by this, including children, is significant."
She said action is needed over many areas of legislation including privacy, communications and consumer laws.
"This is a system that's using its data and knowledge about players to manipulate adults and children, we can't push this all on individual parents to try to clean up," Ms Turner said.
"We need the gaming sector to step up as well."
The Australian gaming industry body, Interactive Games and Entertainment Association, has been contacted for comment.
The group told the ABC most games offer tools parents can use to limit access to content, purchases or screen time and age classifications provide clear guidance on content.
