Games featuring paid loot boxes will soon receive a mandatory 'M' rating in Australia

The Australian Government is tweaking how video games containing in-game purchases are classified in the region.

New classification guidelines will debut on September 22, 2024, and mandate that titles featuring "in-game purchases with an element of chance" must have a minimum classification of 'M' (not recommended for children under 15 years of age).

As noted by Australian game industry trade body IGEA, the updated guidelines define purchases with an "element of chance" as "mystery items players can use real money to buy without knowing what they’ll receive, such as loot boxes."

The changes will apply to video games on computers, console, phones, and tablets (so pretty much the whole gamut) and are being made to "align video game classifications with age-based restrictions that are already in place in the real-world."

"Simulated gambling" carries a harsher restriction

Games that feature "simulated gambling," such as casino games, will be legally restricted to adults aged 18 and over with a minimum classification of 'R 18+.' Projects that were classified before September 22 won't need to be reclassified unless they lose their current rating due to "revocation or modification."

A fact sheet released by the Australian Government notes the 'M' classification is an "advisory rating" and "places no legal restrictions on the sale or distribution of these games."

"The R 18+ classification is a legal restriction meaning it is illegal to sell or distribute these games to people under the age of 18," it adds.

The document explains projects that enable players to "directly purchase loot boxes or other randomized rewards" from an in-game shop using real world currency will be impacted by the new rules.

A game would also warrant an 'M' rating if those loot boxes or rewards were obtained using in-game currency, keys, and other objects that can be purchased using real world cash.

An additional FAQ states titles featuring even a minor instance of simulated gambling—such as an RPG with gambling elements that aren't "the focus of the video game"—would likely receive an 'R 18+' classification.

"The definition of simulated gambling applies to any interactive activity within a video game and does not consider how much of the game consists of simulated gambling," reads the FAQ, which also notes the test for simulated gambling "does not consider the type of currency (in-game versus purchasable) used."