Australia has implemented a regulatory shift aimed at video-games featuring “loot boxes” and similar chance-based in-game purchases, reflecting growing concern about their resemblance to gambling.

Under new guidelines in effect since 22 September 2024, any game that includes paid loot boxes or other random-reward mechanics requiring real-world currency must be assigned at least an “M” (Mature) classification, meaning it is not recommended for users under fifteen.

Games that incorporate full simulated gambling features are required to carry an “R18+” rating and may only be accessed by adults.

The decision follows analysis by policy-makers and regulators who flagged that loot boxes—where players pay for a chance at an item of variable rarity—mirror key elements of gambling: real money in, unknown outcome, and possible reward.

The classification changes apply to new games, and to existing titles only if they undergo major updates that add such mechanics.

The maximum penalty for mis-labelling a game under the rules remains modest, and recent research indicates significant non-compliance: a study found about one-fifth of top games on the Apple App Store and nearly half of top games on Google Play in Australia still carried age ratings below those required despite including loot box mechanics.

Industry reaction has been mixed but largely co-operative.

Major publishers who rely on Australia’s market have begun adjusting models—some now disclose odds for loot-box drops or replace them altogether with direct‐purchase alternatives.

Observers say Australia’s approach may serve as a template for other jurisdictions seeking to regulate gambling-adjacent mechanics in gaming.

Critics of the current regime point to enforcement and transparency challenges.

Researchers note that digital distribution across app stores, international publishers, and conflicting age-rating systems create enforcement gaps.

One academic comment noted that for many children, the mechanics remain hidden and the overall classification change has not yet fully altered the exposure.

Still, the updated rules mark a defined policy shift: games that use chance-based purchases can no longer rely on standard youth-friendly classifications and must signal stronger age-rating thresholds.

For consumers, especially parents and guardians, the classification board emphasises looking for the advisory label “includes in-game purchases or paid random items”, and checking whether the game’s rating is M or R18+ when such mechanics are present.

The regulatory landscape is now evolving, and the Australian model underlines the growing global scrutiny of monetisation mechanics that sit at the boundary of gaming and gambling.