In late 2023, the Australian Classification Board announced new laws around classification for video games that included chance-based loot boxes and simulated gambling. After a grace period for industry adjustment, these laws will come into effect this month.

As of 22 September 2024, new video games that release with “in-game purchases linked to elements of chance, such as paid loot boxes” will now automatically receive a minimum M (Mature) classification, to indicate they are not recommended for children under 15 years of age. Video games that contain any form of simulated gambling, such as “social casino games” will be given a mandatory R18+ rating, restricting their sale to people over the age of 18.

As previously announced, these changes are designed to reduce the likelihood of young kids being exposed to gambling behaviours early. This follows the release of a Standing Committee on Social Policy and Legal Affairs report commissioned by the Australian Government in early 2023, which indicated early exposure to loot boxes in games could encourage gambling with real money later in life.

“While the evidence is not fully developed in relation to the harms of loot box features in games, young people who play these types of games may be more likely to gamble with real money in adulthood, and players can be manipulated into spending more money than they can afford to lose,” the report revealed.

Read: Australian committee recommends action on loot boxes

The Standing Committee on Social Policy and Legal Affairs indicated major concern about the rise of loot boxes and gambling elements in games played by younger kids, and encouraged the government to make changes as soon as possible.

After further studies and consultation with industry, the Australian Classification Board finally announced new classification laws to come into power as of September 2024. From now on, new games released within Australia will need to comply with these updated laws, ensuring that loot boxes and gambling-adjacent content is marked and restricted appropriately.

“The changes respond to growing community concerns about children accessing this content and emerging evidence of potential harms,” the ACB said. “The new classifications advance the Australian Government’s broader efforts to protect vulnerable Australians from gambling harm.”

Notably, the law will not be retroactively applied, unless a video game is re-classified for any reason. You can read more about these changes via IGEA, including how this may impact physical and digital game sales in Australia in the near future.