New Classification Rules for Video Games in Australia: What Developers and Players Need to Know
The Australian Classification Board has recently updated its guidelines for video games featuring in-game purchases linked to elements of chance. The stricter classification measures are aimed at protecting consumers, particularly younger players, from unexpected costs and simulated gambling mechanics.
M Rating for Games with Loot Boxes
One of the key changes is the requirement for online or social games that contain loot boxes to be classified as M (Mature). This move is designed to help families better identify games that include potential hidden costs.
Loot boxes are virtual mystery containers found in many video games. They offer randomised rewards to players based on chance, with items including game-enhancing tools. Players can acquire loot boxes through gameplay, by purchasing them with in-game currency, or by spending real money.
The decision to raise the classification to M follows research from the Australian Gambling Research Centre at the Australian Institute of Family Studies, which found a strong association between loot box engagement, including viewing, opening, and purchasing, and problem gambling.
R18+ Rating for Games with Simulated Gambling
The new guidelines impose an R18+ rating on games featuring simulated gambling elements, such as casino-style mechanics or in-game betting. This means that games incorporating these features will be restricted to adult players.
The Intersection of Social Gaming and Gambling Regulation
Social gaming, which emphasise player engagement and social interaction, may not be prohibited under Australian law if they do not meet the technical definition of gambling under the Interactive Gambling Act 2001 (Cth). However, these games can raise significant legal and regulatory concerns, particularly when they incorporate simulated gambling mechanics or real money transactions.
Social game developers must ensure their products do not inappropriately target children or encourage gambling behaviours. These games are subject to age classifications and other restrictions.
What This Means for Game Developers and Publishers
Under the new classification rules, developers and publishers must ensure that their titles comply with the new rating guidelines, especially if including loot boxes or gambling-like mechanics. The rules will not apply retroactively to existing games but will be enforced when new content updates are released.
For more information on these changes and how they may impact your business, contact our team at Senet, Australia’s leading specialist gambling law, regulatory, and compliance advisory firm.
For more information on these changes and how they may impact your business, contact our team at Senet
