Australia’s new mandatory minimum classifications for gambling-like content in video games are set to take effect on September 22nd 2024.
The new rules were first announced in September of 2023 with full implementation set for one year later. At the time of the announcement, all states and territories had agreed to updated Guidelines for the Classification of Computer Games 2023 with a view to ensuring children are protected from gambling harm.
New Classification Rules
- Any video game with gambling-style content automatically classified as 18+
- Any video game with loot boxes involving element of chance and paid for with real world currency to be given ‘M’ advisory rating
The rules state that any video games that include casino-style games must be given an automatic 18+ classification. This classification will be enforced even if the gambling-style game is only a minor part of the game’s overall theme. This includes in-game side-quests.
Games such as New Super Bros., which features a poker-style game, and Pokémon Red and Blue, which features slots would have been automatically updated to hold an 18+ classification upon their release.
As it now stands, these games and any others that are currently on the market and that feature gambling content will not be upgraded to 18+. Instead, the rules will apply to all new video games or any updated release or re-release of existing titles will receive the 18+ certification.
The rules also state that any games that include paid loot boxes or similar benefits that involve the use of real world currency and are linked to the element of chance will receive an ‘M’ classification. The M classification is an advisory rating and places no legal restrictions on the sale or distribution of these games meaning they can be sold to anyone. However parents and guardians should be aware of the nature of the game.
The changes in classification will apply to all video games on any device.
Changes Follow Years Long Inquiry
The late Labor MP Peta Murphy, chair of the lower house’s standing committee on social policy, took charge of a government inquiry into the effects of online gambling on problem gamblers and minors in 2022.
It collated feedback from consumers including those with a history of problem gambling with loot boxes and the use of simulated gambling in video games two of the main areas of focus. The inquiry also looked into the effects of sports betting advertising.
As a direct result of the inquiry’s findings, the government moved to limit the effects of loot boxes with introduction of the new classification requirements.
The inquiry has led to recent calls from union leaders and former prime ministers for the government to introduce a blanket ban on sports betting advertisements.
Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.
Australia is set to introduce new regulations on gambling and loot boxes in video games, in an effort to protect consumers, particularly young people, from the potential harms associated with these practices.
The new regulations, which are expected to come into effect in the near future, will require video game developers to disclose the odds of winning items in loot boxes, as well as the potential for addiction and other negative consequences. This information will need to be displayed prominently on the game’s packaging and in any promotional materials.
Additionally, the regulations will prohibit the sale of loot boxes to minors, and will require parental consent for any purchases made by minors. This is a significant step towards ensuring that young people are not exposed to the risks of gambling at a young age.
The move comes in response to growing concerns about the impact of loot boxes on young people, with some experts arguing that they can encourage gambling-like behaviors and addiction. In fact, a recent study found that adolescents who purchased loot boxes were more likely to report problem gambling behaviors.
The Australian government has been working closely with industry stakeholders to develop these new regulations, which are designed to strike a balance between protecting consumers and allowing the video game industry to continue to innovate and grow.
Overall, the introduction of these new regulations is a positive step towards ensuring that video games are a safe and enjoyable form of entertainment for all players, particularly young people. It is hoped that other countries will follow Australia’s lead in implementing similar measures to protect consumers from the potential harms of gambling and loot boxes in video games.
