Australian provincial regulator says loot boxes are gambling

Responding to an enquiry from a member of the public this week, Jarrod Wolfe, a strategic analyst in the Victorian Commission for Gambling and Liquor Regulation compliance division, said that the use of loot boxes in video games is legally questionable and constitutes gambling under current provincial legislation, although it is hard to regulate.

His opinion follows a similar view expressed earlier this week by the Belgian Gambling Commission, a Hawaiian lawmaker and the Dutch regulator’s confirmation that the issue is under consideration (see previous reports).

Wolfe observed in his response to the query that legislation has not moved as fast as the technology, leaving authorities at both state and federal levels not best equipped to determine the legality of loot box practices in lieu of the fact the entities responsible are based overseas.

He revealed that the Victorian regulator has been “engaging with interstate and international counterparts” to work on policy changes that would “modernise and inform both federal and state based legislation”.

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