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Australian Gaming Regulator Agrees Loot Boxes Constitute Gambling

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Australian Gaming Regulator Agrees Loot Boxes Constitute Gambling
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The Victorian Commission for Gambling and Liquor Regulation (VCGLR) of Australia has also spoken about the debate concerning the gambling nature of loot boxes in video games which has recently made headlines and is in agreement that loot boxes constitute gambling.

Loot boxes made headlines this month after Star Wars: Battlefront II was released to the public on November 17.

Loot boxes are prize packs that contain randomized items that could boost the player’s performance or alter the cosmetic appearance of their character. Players could purchase these loot boxes for a price.

Ever since the launch, a number of gambling regulators in different parts of the world called the loot box system a form of gambling, since there is money and stakes involved in the game. The Belgian Gaming Commission, the Netherlands Gaming Authority and the US State of Hawaii were some of the first agencies to start investigations against these loot boxes and call out the developer, Electronic Arts(EA) for trivializing gambling and making it accessible to minors who are playing the Star Wars game.

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State representative Chris Lee of Hawaii even went as far as calling Battlefront II, a themed online casino designed to prey on younger and vulnerable kids, and encourage them to spend money on the hopes that it would improve their gameplay. The Victorian gambling regulator has also investigated loot boxes and based on their findings confirm that loot boxes fall very much into the gambling category as defined by Victorian legislation.

Similar findings and investigation efforts are being conducted by the Victorian gambling regulator in Australia as well.

Jarrod Wolfe, a Strategic Analyst for the Compliance Division at VCGLR stated that the normalization of gambling mechanics in such venues where minors are largely involved is legally questionable. VCGLR should technically be taking action against these loot boxes because they can be classified as gambling but the Victorian regulator is limited by their jurisdiction.

In a statement, Jarrod Wolfe said: “Unfortunately where the complexity arises is in jurisdiction and our powers to investigate. Legislation has not moved as quick as the technology; at both State and Federal level we are not necessarily equipped to determine the legality of these practices in lieu of the fact the entities responsible are overseas.

VCGLR’s said that their hands are tied for now but one of the best things they can do at the moment is to work with the Australian Classification Board. Wolfe said that any game that uses the same predatory loot box mechanics could be automatically rated R in the market. An R rating in Australia means Restricted Exhibition and establishes that the product is suitable only for individuals who are 18 and above.

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Australia

SkyCity Appoints Jason Walbridge as Chief Executive Officer

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SkyCity Entertainment Group Limited has appointed Jason Walbridge as its new Chief Executive Officer.

Jason has more than two decades of senior executive public company experience in the global land-based and online gaming industries. He is currently a Strategic Advisor to global gaming and technology company Aristocrat Leisure Limited on its proposed acquisition of NeoGames S.A, and Executive Chairman of National Entertainment Network LLC, the largest amusement route operator in the US. He has been appointed to the role after an extensive international search.

SkyCity Board Chair Julian Cook said: “The Board is delighted to announce Jason’s appointment as CEO of SkyCity, and we are looking forward to the valuable contribution Jason will make to the business. Jason has extensive global experience in the land-based and online gaming industries, which will position him well to lead SkyCity through its next phases.”

Mr Walbridge said: “It will be a privilege to lead SkyCity, and I am excited to be joining the business at this time as SkyCity looks to pursue the many opportunities ahead of it.”

Mr Walbridge is expected to start in early July 2024, following his move back to New Zealand.

Prior to his current roles, Mr Walbridge held roles with the online gaming supplier NYX Gaming Group Limited and its acquirer Light & Wonder Inc, and before that he spent 18 years with Aristocrat Leisure Limited where he held executive leadership roles in New Zealand and the US. Previously, he held senior roles within consulting, including with Ernst & Young, and was an Officer in the New Zealand Defence Force. Mr Walbridge holds an MBA in International Management from the Auckland Institute of Studies.

Mr Cook confirmed that Callum Mallett will continue as Interim Chief Executive Officer until Mr Walbridge’s commencement date.

“I’d like to thank Callum for his continued leadership and his support during this period,” Mr Cook said.

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Australia

VGCCC Fines BlueBet AU$50,000 for Gambling Advertising Breaches

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BlueBet has been fined AU$50,000 by the Victorian Gambling and Casino Control Commission (VGCCC) for breaching gambling advertising regulations.

The company was found guilty of 43 charges related to displaying gambling advertisements on or above public roads, contravening the Gambling Regulation Act 2003.

The charges stemmed from an investigation initiated by VGCCC, following a complaint from a member of the public. The breaches occurred over a two-week period in August and September 2022, with BlueBet’s gambling advertisements appearing on digital billboards at various locations, including Point Cook, Laverton, Rockbank and Ravenhall.

Magistrate Greg Thomas, overseeing the case, expressed scepticism about BlueBet’s defence that it was unaware of the breaches, given the strategic placement of the billboards to target males aged 15-54 years old. While no conviction was recorded, Magistrate Thomas noted the high degree of negligence exhibited by BlueBet.

VGCCC CEO Annette Kimmitt AM said: “Gambling advertising has no place on public roads where it is readily visible to children and other vulnerable groups. These places are especially difficult to avoid as part of day-to-day activities. This decision sends a clear message to wagering providers that flout these protections for our community.”

Although Magistrate Thomas considered imposing a higher fine and recording a conviction, he took into account BlueBet’s guilty plea, cooperation with VGCCC and measures taken to prevent future breaches. BlueBet has implemented changes to prevent similar incidents and has cooperated with VGCCC throughout the process.

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Australia

VGCCC Introduces New Rules for Wagering Account Statements

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The Victorian Gambling and Casino Control Commission (VGCCC) has introduced new standards for how activity statements should be presented to wagering account holders. The new standards require providers to use plain English and avoid unnecessary vocabulary. The use of colours is limited to black and red to represent losses.

The VGCCC took the measure after finding inconsistencies in the way information was displayed on sample activity statements across different providers. Account holders must be able to see how much of their own money they have lost, with free and bonus bets excluded from the net loss figures. Net wins must be shown with stakes deducted. The gambling harm taglines that appear at the end of wagering ads must be displayed on each statement.

The new standards came into force on April 1. Failure to comply could result in a penalty of 60 penalty units, equivalent to AU$11,538.60 for each non-compliant activity statement issued.

VGCCC CEO Annette Kimmitt AM said: “The days of inconsistent player activity statements are over. Wagering account holders will be better informed about their spending – and therefore better equipped to make informed decisions about their gambling – thanks to the clarity and fairness these changes bring.”

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