Date: 26.09.2023

by Mateusz Mazur

Last update: 25.11.2023 10:49

Australia Passes New Laws Regulating Loot Boxes

The Federal Government of Australia has recently approved new legislation targeting loot boxes and microtransactions in video games, marking another step in the global effort to address these contentious in-game purchases.

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This move reflects a broader push against consumer-unfriendly and predatory practices within the gaming industry.

Background on Loot Boxes and Microtransactions

Loot boxes and microtransactions, commonly found in games like Overwatch, NBA 2K, and FIFA, have been a source of controversy in the gaming community for years. They involve small in-game purchases, often criticized for their elements of chance, and have raised concerns about their resemblance to gambling.

Governments worldwide have been taking action against these practices. Some have called for self-regulation within the gaming industry, while others have introduced legislation to combat the issue. Australia is among the countries taking significant steps to regulate in-game purchases.

Australia’s New Laws

Australia’s new laws primarily impact video game classifications. Games that include in-game purchases linked to elements of chance, such as paid loot boxes, will receive an M rating, meaning they are recommended for players over 15 but not legally restricted based on age.

Games that simulate gambling more directly, like social casino games or virtual slot machines, will be rated 18+, barring anyone under 18 from purchasing them. These laws will go into effect in September 2024, affecting future games with microtransactions.

Positive Impact and Parental Awareness

While the laws may not be as restrictive as some might have hoped, they still have potential benefits. By assigning an M rating to games with loot boxes, parents and guardians can make informed decisions about what games their children play, protecting them from potential gambling-related harms. This classification can be particularly useful in identifying games with potentially harmful purchasing systems for those unaware of the concept of loot boxes.

Australia’s new laws raise questions about whether enough is being done to combat predatory in-game spending globally. Reports suggest that loot box bans in some countries, like Belgium, aren’t being effectively enforced. Stronger opposition and clearer regulations may be necessary to address gambling systems in games, particularly those targeting children. The response of the gaming industry to such laws remains to be seen.

Australia’s legislation represents a significant step toward addressing loot boxes and microtransactions in video games. It underscores the importance of responsible gaming practices and the need to protect players, especially young ones, from potentially harmful in-game purchases. The impact of these laws on the broader gaming industry and their potential influence on other countries remains a subject of ongoing debate and observation.