In late 2023, the Australian Classification Board announced new legislation for the classification of video games that include chance-based loot boxes and simulated gambling. These laws are scheduled to take effect this month after a grace period for industry adjustments.
As of September 22, 2024, new video games released with “in-game purchases linked to fortuitous elements such as paid loot boxes” will automatically receive a minimum M (Mature) classification; Indicates that it is not recommended for children who: 15 years old. Video games that involve any form of simulated gambling, such as “social casino games”, are given a mandatory R18+ rating and are restricted from sale to people over 18 years of age.
As previously announced, these changes are designed to reduce the likelihood of early exposure of young children to gambling behavior. This follows the release of a report by the Australian Government-commissioned Standing Committee on Social Policy and Law in early 2023, which found that early exposure to in-game loot boxes They point out that it may encourage real money gambling in later years.
“Although the evidence regarding the harms of loot box features in games is not well developed, young people who play these types of games are more likely to gamble for real money as adults, and players may feel manipulated. They may spend more money than usual because they can afford to lose,” the report revealed.
Read: Australian commission recommends action on loot boxes
The Standing Committee on Social Policy and Law expressed great concern about the increase in loot boxes and gambling elements in games played by young children and encouraged the government to make changes as soon as possible.
After further research and consultation with industry, the Australian Classification Board has finally announced the new taxonomy, which will come into force from September 2024. From now on, new games released within Australia will have to comply with these updated laws to ensure loot boxes and gambling. – Adjacent content is marked and appropriately restricted.
“This change is in response to growing community concern about children accessing this content and emerging evidence of potential harm,” the ACB said. “The new classification advances the Australian Government’s broader efforts to protect vulnerable Australians from the harms of gambling.”
Specifically, this law does not apply retroactively unless the video game is reclassified for some reason. Find out more about these changes, including how they may affect physical and digital game sales in Australia in the near future, through IGEA.
