Australia’s Gambling Updates May Spill Over to the Video Game Industry

The Australian federal government is still on course to ban credit card payments in iGaming. However, ambiguous wording in the country’s Interactive Gambling Act 2001 may mean the measure will affect other gambling-like activities like those in video games. With government officials yet to provide a conclusive reply, Australia may suddenly join Belgium and the Netherlands in their ban on loot boxes.

The New Restriction May Have Unintended Consequences

A proposed amendment to Australia’s Gambling Act 2001 may ban gamblers from using their credit cards for wagering in an attempt to curb problem gambling in the country. This measure aims to curtail user spending and limit potential harm. The government has not yet provided a definitive time frame but plans to introduce the legislation within the next few months.

While this is, without a doubt, a positive step for player safety, the new restrictions could have unintended consequences for the video game industry. Many games now feature loot boxes and other forms of monetization that can be considered gambling, putting them at odds with Australia’s upcoming reforms.

Countries like Belgium and the Netherlands have banned such practices, considering games containing randomized loot boxes equivalent to illegal gambling. The controversial measure caused significant unrest among video game publishers, as some even refused to launch some of their titles in the two countries. However, most companies just adapted their products and moved on.

Officials Have Been Cagey in Their Response

According to a recent investigation by video game outlet Kotaku, Australia may, intentionally or not, be the newest country to ban loot boxes. The country’s Interactive Gambling Act of 2001 contains wording that may also apply to video games. If that is true, a ban on credit card transactions would be a sudden and substantial blow to many popular titles which heavily rely on microtransactions.

When asked to clarify, Minister for Communications Michelle Rowland noted that the government would soon begin public consultations, giving lawmakers sufficient time to iron out any edge cases like this. She added that the amendment was only meant to target gambling operators but did not comment on the position of video games within the Gambling Act.

The proposed ban will apply to Australian licensed wagering providers as defined under the Interactive Gambling Act.

Michelle Rowland, Australia Minister for Communications

Ultimately, it is still uncertain how the new credit card restrictions will affect the video game industry. While the Australian government has looked into the rising controversies surrounding video game monetization, it is yet to propose any significant reforms. The upcoming gambling reforms are unlikely to impact gamers, but lawmakers should use the opportunity to clarify when they plan to tackle the issue.