Summary
The Federal Government of Australia has recently approved new laws relating to loot boxes and other gambling elements in video games. These new laws are part of the country’sgreater push against in-game purchases.
Loot boxes and small in-game purchases, often referred to as microtransactions, have been central topics of discussion in gaming communities for the past decade. Popularized by games likeOverwatchand sports franchises likeNBA 2KandFIFA, microtransactions are heavily maligned by most video game players, as they are generally considered consumer-unfriendly and predatory. The debate around microtransactions has moved beyond gaming circles over the past few years, as governments throughout the world have begun to crack down on games implementing these practices. Specifically, these governments have fought against loot boxes and other purchases that involve elements of chance, equating them to gambling. Some governments have called forself-regulation in the games industry, while others have gone farther and introduced legislation to combat the issue.
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One country taking significant steps against loot boxes is Australia, whose government recently passed laws that will impact future games with microtransactions. The laws primarily affect video game classifications, stating that “games containing in-game purchases linked to elements of chance, including paid loot boxes” will be rated M, meaning that they will be recommended to players over 15, though not legally restricted to anyone on the basis of age. Games that simulate gambling in a more direct way, like social casino games or virtual slot machines, will be rated 18+, which will bar anyone under 18 from purchasing them. This law will go into effect in September 2024, soolder loot box-heavy games from EA, 2K, Activision, and other major studios will not be impacted.
This decision may not as restrictive as it could be, but it could still have a positive impact. By mandating that all games with loot boxes be rated M, parents and guardians can make informed decisions about what games their children can play, thus protecting children from the harms of gambling. The M classification could be particularly useful at identifying games as potentially harmful for purchasers who would otherwise be unaware of the concept of loot boxes or other chance-related purchasing systems.
Australia’s new laws may also prompt some to wonder if enough is being done to combat predatory in-game spending. A 2022 study showed that loot box bansaren’t being enforced in Belgium, so a stronger display of opposition may be what’s required to slow the spread of gambling systems, especially those targeted at children. Only time will tell how the gaming industry will respond to these sorts of laws in Australia and beyond.
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