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2022
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
Classification (Publications, Films and Computer Games)
Amendment (Loot Boxes) Bill 2022
EXPLANATORY MEMORANDUM
and
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Circulated by authority of
Andrew Wilkie MP
Classification (Publications, Films and Computer Games) Amendment (Loot Boxes)
Bill 2022
OUTLINE
This bill seeks to regulate how computer, video and online games which contain 'loot
boxes' are classified.
Loot boxes are features of interactive games containing undisclosed items that can be
purchased with real currency. They can take the form of a virtual box, crate, prize wheel or
similar mechanism and contain a prize or item which may or may not benefit the player.
For example, a loot box might contain a particular character, additional play time or access
to levels and game maps. As the rewards contained within these loot boxes can offer
competitive advantages within the game, they carry significant value for players and may
hold resale value.
By tempting players with the potential to win game-changing items, encouraging risk-
taking for possible reward, delivering random prizes on an intermittent basis, and
encouraging players to keep spending money, loot boxes give rise to many of the same
emotions and experiences associated with poker machines and traditional gambling
activities. This is especially concerning as many games which contain these features are
popular with adolescents and young adults. Despite this, loot boxes are not currently
required to be considered in classification decisions nor are games required to advertise
when they contain this feature.
This bill remedies this by requiring the Classification Board to consider loot boxes when
classifying a game. Further, the Board must set a minimum classification of R18+ or RC
for games containing this feature, which will restrict children from purchasing and playing
these games.
The amendments also require a warning to be displayed when games contain loot boxes
or similar features, so that they can be easily identified by parents and guardians.
FINANCIAL IMPACT
The bill will have no financial impact.
NOTES ON CLAUSES
Clause 1: Short Title
This clause is a formal provision and specifies the short title of the bill as the Classification
(Publications, Films and Computer Games) Amendment (Loot Boxes) Bill 2022.
Clause 2: Commencement
This clause provides for the commencement of the Act on the day after it receives Royal
Assent.
Clause 3: Schedules
This clause establishes that, as the intent of the bill is to be realised through amendments
to another Act, the schedule of this bill will amend that Act accordingly.
Schedule 1
Classification (Publications, Films and Computer Games) Act 1995
Item 1: After section 9A
This item adds a new classification requirement for the Classification Board to consider
when issuing classification guidelines. It does so by inserting an additional section, section
9B, which provides classification and consumer advice for computer games that contain
loot boxes.
1. Subsection 9B(1) requires the Board to classify computer games which contain loot
boxes as either R 18+ or RC. This means all computer games which contain loot
boxes are legally restricted, and at a minimum can only be purchased, viewed and
sold by consumers of 18 years old or above.
2. Subsection 9B(2) mandates that the packaging of games which contain loot boxes
must express that they do so, ensuring it is clear for parents and guardians that the
game in question contains the gambling-type feature. This will be incorporated into
the pre-existing classification requirements which are required to be displayed on
games packaging.
3. Loot boxes are defined as a feature of a computer game where digital containers of
randomised virtual items, of varying value, can be obtained for consideration
(subsection 9B(3)). Under this definition, the classification and consumer advice
provisions only apply to loot boxes which require actual consideration to be paid to
procure access to the feature, rather than capturing free or bonus features which
don't require real currency to be paid. This includes circumstances where virtual
currency has been purchased using real money, which is then used to buy the loot
box. It is intended this definition is wide enough to capture features with a
randomised reward function even when strictly not a 'box' or a 'crate', for example a
virtual prize wheel.
Item 2: Application of amendment
4. The amendments do not apply retrospectively and are only applicable to computer
games classified after the bill comes into force.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Classification (Publications, Films and Computer Games) Amendment (Loot Boxes)
Bill 2022
This bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011.
Overview of the bill
This bill seeks to regulate how computer, video and online games which contain 'loot
boxes' are classified.
Loot boxes are features of interactive games containing undisclosed items that can be
purchased with real currency. They can take the form of a virtual box, crate, prize wheel or
similar mechanism and contain a prize or item which may or may not benefit the player.
For example, a loot box might contain a particular character, additional play time or access
to levels and game maps. As the rewards contained within these loot boxes can offer
competitive advantages within the game, they carry significant value for players and may
hold resale value.
By tempting players with the potential to win game-changing items, encouraging risk-
taking for possible reward, delivering random prizes on an intermittent basis, and
encouraging players to keep spending money, loot boxes give rise to many of the same
emotions and experiences associated with poker machines and traditional gambling
activities. This is especially concerning as many games which contain these features are
popular with adolescents and young adults. Despite this, loot boxes are not currently
required to be considered in classification decisions nor are games required to advertise
when they contain this feature.
This bill remedies this by requiring the Classification Board to consider loot boxes when
classifying a game. Further, the Board must set a minimum classification of R18+ or RC
for games containing this feature, which will restrict children from purchasing and playing
these games.
The amendments also require a warning to be displayed when games contain loot boxes
or similar features, so that they can be easily identified by parents and guardians.
Human rights implications
By restricting certain games to players aged 18 or above, this bill restricts freedom of
expression as it provides for classification and restriction of access to certain content. The
freedom is curtailed on the basis of protection from harm. That is, restricting underage
access to gambling-type gameplay. The measure itself is proportionate in that the content
is not subject to a blanket ban, and the Board still retains some discretion as to the
classification of the material. The proposed amendments are therefore reasonably
proportionate to the legitimate purpose of protecting young people from exposure to
gambling like game features.
Conclusion
This bill is compatible with human rights because to the extent that it may limit human
rights, those limitations are reasonable, necessary and proportionate.
Andrew Wilkie MP