Restrict gambling-like features in video games for under-16s

What is the topic?

This petition asks the New Zealand Parliament to restrict "gambling-like features" in video games for people under 16. The main focus is on loot boxes. A loot box is a virtual container in a game that players buy with real money. When opened, it gives random items, such as skins, weapons, or characters. Because the outcome is random and costs money, critics argue it functions like a slot machine. The petition seeks an age restriction for these features and a ban on them in games specifically targeted at children.

Current situation in New Zealand

New Zealand currently does not have specific laws banning loot boxes in video games. The Gambling Act 2003 regulates gambling, but it has not been explicitly applied to digital in-game purchases. However, the government has been reviewing this area. In recent years, the Ministry of Business, Innovation and Employment (MBIE) and the Gambling Commission have investigated whether loot boxes constitute gambling. While no ban is currently in force, there is ongoing public debate and international pressure to regulate these mechanics to protect minors.

Arguments in favour

• Protection of minors: Supporters argue that young people are more vulnerable to the psychological effects of random rewards, which can mimic the dopamine hits associated with gambling.
• Financial harm: There are concerns that children may spend significant amounts of money without fully understanding the value, leading to debt or conflict at home.
• Prevention: Early exposure to gambling-like mechanics may normalize gambling behaviour, potentially leading to problem gambling in adulthood.

Arguments against

• Definition of gambling: Opponents argue that loot boxes are not gambling because the items have no cash value and cannot be exchanged for money directly. They view them as a form of entertainment or collection.
• Parental responsibility: Some argue that it is the role of parents to manage their children’s screen time and spending, rather than the government imposing restrictions.
• Industry impact: Game developers argue that loot boxes are a standard business model that funds free-to-play games. Banning them could reduce the availability of affordable games for all ages.

Relevant context

This issue is part of a broader global conversation. Countries like Belgium and the Netherlands have already restricted or banned certain types of loot boxes. In New Zealand, the issue has gained traction following reports of significant spending by minors and growing concern from health professionals about youth mental health. The petition reflects a demand for clearer legal boundaries to distinguish between gaming and gambling, particularly for those under 16.

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