Australia classifies loot boxes as 18+

Australia is moving forward with an ambitious plan to better protect consumers from the potentially pernicious influence of loot boxes. The digital containers that contain goods for video games and bear similarity to gambling have been classified as R18+ with the rules kicking in from September 2024.

The same rules will now apply to social casinos, which are similarly exploring a gambling mechanic, although they do not necessarily provide real money products. Moving forward, developers and publishers would not be able to offer their products, be that a social casino or a loot box, to anyone under the age of 18.

However, the new rule will only apply to games that are released starting in September 2024, and will not impact games that have already been released on the market, which appears to be a rather controversial decision in itself. In choosing to place loot boxes in the R18+ category, Minister for Communications Michelle Rowland explained that the government had used an evidence-led approach in determining the proper restrictions and consumer protection best practices in the matter.

Nevertheless, pushing forward with an official minimum classification for content that derives from gambling mechanics is a significant step forward for the country whose residents are some of the biggest gamblers in terms of total spend per capita in the world.

Loot boxes have been a contentious topic for many. For one, the debate about whether they constitute a form of gambling – however subtle – has been raging all over the world. Individual states in the US have undertaken a closer review, the United Kingdom has similarly attempted to throw loot boxes in with overall gambling laws, and Belgium and the Netherlands have asked publishers to withdraw these digital goods altogether.

Although the measure may not impact companies that are already established on the market, the Interactive Games & Entertainment Association of Australia said that the measure was not ideal nor in the best of industry of business or consumers. However, the organization confirmed that its members would continue to comply with existing laws and ensure that they meet regulatory standards.

Despite their somewhat undetermined status, loot boxes are less likely to ever be classified as gambling. Regardless, they are still seen as a conduit of potentially problematic behavior in children, hence Australia’s decision to move forward with the new categorization and restrictions. The present decision is based on efforts that began earlier this year in April.

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