Australia tightens rules on loot boxes, gambling-like features in video games

Australia’s new rules targeting video games with loot boxes and "simulated gambling" content are set to take effect from Sunday (September 22), imposing stricter age restrictions on games that involve gambling-like features or chance-based in-app purchases.

Under the new classification guidelines, video games featuring simulated gambling will automatically receive an R18+ rating, making them inaccessible to players under the age of 18. Additionally, games that include in-game purchases with an element of chance, such as loot boxes, will be rated at least M, restricting their availability to players over 15.

The regulations, which were first announced in 2023, apply only to games classified after September 22, 2024. Existing titles will not require reclassification unless they undergo significant updates or modifications. Games that feature chance-based mechanics but do not involve real-world currency or interactive gambling elements are exempt from these rules.

Despite the M rating serving as an advisory for games with loot boxes, the new rules do not legally restrict their sale, though parents are urged to monitor the content. Games with non-interactive gambling imagery or settings will also remain exempt.

The changes come in response to a government inquiry led by the late Labor MP Peta Murphy, which focused on the potential harm of online gambling and loot boxes on problem gamblers and minors. The inquiry also addressed growing concerns over the influence of sports betting advertisements.

The inquiry’s findings have sparked broader discussions on the need for more comprehensive gambling regulations, with some advocates calling for a total ban on sports betting ads across the country.