Australia to Introduce New Guidelines for Games with Loot Boxes and Gambling

Australia has created new classification guidelines for video games that contain gambling-like content. This addition comes amid growing concerns about Australia’s gambling harm rates and worries about potential links between video games containing gambling-like mechanics and gambling addiction.

The New Measure Aligns with Australia’s Efforts to Protect Younger Citizens from Harm

The new measure would come into effect on September 22 this year and would cover in-game mechanics such as loot boxes and other similar in-game purchases.

Loot boxes have remained a point of contention among regulators and lawmakers. Some markets consider them to be borderline gambling while others believe that the differences are too stark for such products to be considered gambling.

While Australia doesn’t plan an outright ban on loot boxes like certain other markets, the country will require video games including such content to be assigned a minimum classification of M (Mature). This rating is technically not associated with any legal or sales restrictions but marks such titles as not recommended for those under 15.

In the meantime, games that feature simulated gambling, slots or casino games will be assigned an R 18+ classification. Unlike the class M games, R 18+ titles will be legally restricted to adults only.

The Change Will Not Affect All Games Featuring Casinos or Chance-Based Mechanics

This major change will apply to video game retailers, as well as PC and gaming console platforms. As mentioned, it will affect games offering loot boxes or other randomized content purchasable with real money or in-game tokens associated with real money. Games featuring interactive gambling, as well as social casino games are also set to be affected by the new classification guidelines.

Conversely, games featuring casino settings without offering actual simulation of casino gaming will likely remain unaffected. Games that offer chance-based mechanics that is not associated with real money are also expected to be exempted from the aforementioned changes.

The Australian government clarified that games that have been released prior to the enforcement of the new guidelines unless they receive significant modifications or are unclassified.

Earlier this year, the German gambling regulator Gemeinsamen Glücksspielbehörde der Länder (GGL), asked the federal states to review the usage of mechanics such as loot boxes. The move aligned with the GGL’s efforts to protect minors from gambling content.