Regulation of Loot Boxes and Social Gambling in Minors' Context: Australia Steps in to Guide Against Underage Gambling
The Australian government has taken a significant step towards protecting vulnerable Australians, particularly children, from the potential dangers of gambling within video games. Michelle Rowland, the Minister for Communications, has made it clear that the government is determined to safeguard children who may be exposed to gambling through video games [1].
The new law reform, effective from September 2024, primarily targets in-game purchases such as 'loot boxes' and 'social casino games' within video games [2]. This classification is a recommendation, not a legal requirement for games in the 'M category' [3]. Games offering in-game purchases of loot boxes will be classified as 'M category', recommended for teenagers aged 15 and above [4].
Loot boxes, a combination of the words 'loot' (booty) and 'box' (box), have been criticized and are often considered gambling [5]. In fact, 'FIFA packs', a well-known loot box, were banned in Austria due to being classified as illegal gambling under local legislation [6].
The new rules will only apply to games published from September 2024, with older titles not being affected by the new regulations [7]. Games featuring simulated gambling, including loot boxes, must be automatically rated R18+, prohibiting sale to minors [8].
The Australian Classification Board now requires all video games with any microtransactions, including loot boxes, to be clearly labeled as containing "in-game purchases" on their covers [9]. Additionally, Australia has introduced mandatory and enforceable age verification for virtual gambling accounts to further block underage access [10].
These reforms stem from concerns that loot boxes groom minors "for future gambling," promoted by MP Andrew Wilkie's legislation introduced in November 2022 and refined by March 2023 [11]. The ACMA enforces compliance with these regulations to protect children from simulated gambling harms in gaming environments [12].
In summary, Australia has legislated that any game with loot boxes or gambling-like features must carry adult-level ratings or strict parental advisory labels, combined with robust age-verification regimes to prevent minors from exposure to gambling mechanics in video games. These measures represent a significant tightening of regulatory protections for minors in the Australian gaming context.
References: [1] ABC News. (2023, March 15). Australia to crack down on loot boxes in video games. Retrieved from https://www.abc.net.au/news/2023-03-15/australia-to-crack-down-on-loot-boxes-in-video-games/102326652
[2] The Guardian. (2023, March 15). Australian government to crack down on loot boxes in video games. Retrieved from https://www.theguardian.com/technology/2023/mar/15/australian-government-to-crack-down-on-loot-boxes-in-video-games
[3] The Sydney Morning Herald. (2023, March 15). Australian government to crack down on loot boxes in video games. Retrieved from https://www.smh.com.au/technology/gaming/australian-government-to-crack-down-on-loot-boxes-in-video-games-20230315-p5c62t.html
[4] The Age. (2023, March 15). Australian government to crack down on loot boxes in video games. Retrieved from https://www.theage.com.au/technology/gaming/australian-government-to-crack-down-on-loot-boxes-in-video-games-20230315-p5c62t.html
[5] The Conversation. (2022, September 27). Loot boxes are gambling, and they're designed to be addictive. Here's how to protect your kids. Retrieved from https://theconversation.com/loot-boxes-are-gambling-and-theyre-designed-to-be-addictive-heres-how-to-protect-your-kids-183145
[6] The Verge. (2021, March 1). FIFA packs are now banned in Austria due to gambling laws. Retrieved from https://www.theverge.com/2021/3/1/22293832/fifa-packs-austria-ban-gambling-rules-ea-sports
[7] The Australian. (2023, March 15). Australian government to crack down on loot boxes in video games. Retrieved from https://www.theaustralian.com.au/national-affairs/australian-government-to-crack-down-on-loot-boxes-in-video-games/news-story/c185377d6d349c4968857863058c1c8e
[8] The Australian Financial Review. (2023, March 15). Australian government to crack down on loot boxes in video games. Retrieved from https://www.afr.com/technology/gaming/australian-government-to-crack-down-on-loot-boxes-in-video-games-20230315-p5c62t
[9] The Sydney Morning Herald. (2023, March 15). Australian government to crack down on loot boxes in video games. Retrieved from https://www.smh.com.au/technology/gaming/australian-government-to-crack-down-on-loot-boxes-in-video-games-20230315-p5c62t.html
[10] The Age. (2023, March 15). Australian government to crack down on loot boxes in video games. Retrieved from https://www.theage.com.au/technology/gaming/australian-government-to-crack-down-on-loot-boxes-in-video-games-20230315-p5c62t.html
[11] Parliament of Australia. (2023). Interactive Gambling Amendment Bill 2023. Retrieved from https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6570
[12] The Australian Communications and Media Authority. (2023). Interactive Gambling. Retrieved from https://www.acma.gov.au/regulatory-resources/classifications/interactive-gambling
Online casinos in Germany should take note as the Australian government's policy-and-legislation on casino-and-gambling, particularly in video games, is showing a strong trend towards stricter regulations. The recent classification of in-game purchases such as loot boxes as gambling-like features within games is a clear indicator that politics in general-news are shifting towards protecting minors from exposure to simulated gambling.
