This act outlines a broad prohibition against ‘interactive gambling services’ when delivered via digital communication methods. This blog examines the legality of online casinos in Australia including the federal prohibition on online interactive gambling services, state and territory approved exceptions and the legality of overseas based online casino operators. 6.91The Committee is aware that some games that contain loot boxes more closely resemble gambling than others and therefore have a greater risk of harm. The Australian Government should consider applying a more granular approach to determining the classification of games with loot boxes through the NationalClassification Scheme.

Young people’s experience of simulated gambling

21K Sakata and R Jenkinson, ‘What is the link between video gaming and gambling? ’, Growing Up in Australia Snapshot Series, Issue 7, Australian Institute of Family Studies, October 2022, page 2. 6.99The Committee recommends that the Australian Government commissions research into an effective simulated gambling warning label. 6.93In making this recommendation, the Committee expresses its support for the adoption of the further comprehensive reforms proposed by the Stevens Review, including the recommendation that online content is compliant with the current Scheme. We may be big, a global games and technology leader, but we are still a family at heart.

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6.3Concerns were raised that simulated gambling and gambling-like features in interactive games may cause harm, including addiction, and can normalise monetised gambling among young people, leading to gambling harm in the future. 6.95Parents and guardians would be more likely to rely on the National Classification Scheme if they were provided better age-based guidance about the presence and risks of simulated gambling and gambling-like elements in games. Similarly, better education is required to help vulnerable consumers, such as children and adolescents, to make more informed choices and to minimise harm. Many forms of online gambling services are outlawed federally in Australia under section 5 of the Interactive Gambling Act 2001 (Cth) (‘IGA’).

6.90The National Classification Scheme provides a nationally consistent age-rating system across all platforms, physical and digital, and regular, up-to-date information for consumers on the themes contained in interactive games. This is a good first step in ensuring that consumers can make more informed purchasing decisions and is consistent with the evidence received in this inquiry about the relative risk of harm of these types of games. 6.85To date, there appears to be no right answer to addressing simulated gambling and gambling-like activities in interactive games through regulation. Some countries have tried to define certain types of games as gambling, some have adopted industry-led consumer protection measures and others have used classification restrictions to help people to make safer choices. 6.55The Committee considered whether the definition of ‘gambling service’ in the IGA is appropriate for modern technologies and if it should be amended to capture additional gambling-like activities such as games containing loot boxes and social casino games.

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This is extremely concerning, and it is the Committee’s view that Australia cannot wait another generation before acting on this important issue. 6.58There were contrasting views on whether the definition of gambling service in the IGA should be broadened to include games and game elements like social casinos and loot boxes. 6.101Australia should adopt the approach taken by other countries to work with industry to implement consumer protection measures in interactive games through self-regulation. However, if tangible improvements to consumer protections are not realised, the Australian Government should consider legislative options.