Australia on the cusp of reclassifying video games with loot boxes

Australia has long been debating whether video games that contain loot boxes – a chancey part of a game – constitute a form of gambling. The debate has stilted towards mostly yes but scientific evidence backing this claim has been thin, even among the most vociferous anti-gambling advocates.

Loot boxes once again prompt regulatory change in Australia

Regardless, a consensus has emerged that the government ought to do more to ensure that young people, especially adolescent individuals do not develop an unhealthy relationship with "games of chance," the label which is usually attributed to loot boxes.

The government is now answering this call, arguing that in-game purchases have an "element of chance" to them, and games that contain loot boxes will receive an "M" classification, meaning that they are not recommended for adolescents under the age of 15.

These restrictions, which were originally agreed upon last year, will be even stricter for video games that may feature a more pronounced gambling experience, such as casino games – they will be subject to an R18+ restriction, which could impact massively popular franchises such as Grand Theft Auto and Red Dead Redemption. Grand Theft Auto already has experience with an R18+ rating in the Down Under, however.

Other popular franchises include FIFA, of course, which was in the midst of several high-profile legislative debates. Countries such as the Netherlands and Belgium have sought to oust the game in the version where it features loot boxes.

The new standards in Australia are coming into effect on September 22, 2024, and will apply to any game that can be played from computers, consoles, smartphones, or tablets. The games that can expect to be impacted are those that are currently in the G or PG ratings, and they may be the primary target of regulators as they pivot to apply the new restrictions.

Loot boxes are digital containers of goods that are bought in exchange for virtual currency, but ultimately with real money, that contain specific goods that are valued by players.

This could be a cosmetic change or a gameplay-impacting item. Loot boxes release these rewards at random which stems the debate about whether they constitute a form of gambling. The evidence mostly – and begrudgingly – suggests they are not.

Anti-gambling sentiments mount within Australian society

This all comes at a particularly high point in Australian politics with the government of Prime Minister Anthony Albanese beleaguered by anti-gambling advocates and struggling to find a way to pass tougher laws on gambling without causing an economic downturn that could cost political capital.

Albanese has tentatively acknowledged that sports and gambling have a relationship that needs to be revisited, as more and more people argue that tougher measures are needed to protect Australian consumers who amass losses in the billions. The re-classification of games with loot boxes in the Down Under is part of this attempt.

All over the world, calls for closer examination and re-classification of loot boxes have been heard, but not all jurisdictions are answering them.

Image credit: Unsplash.com