The Australian Senate Environment and Communications References Committee has delivered its final report examining loot boxes in video games. The ‘Gaming micro-transactions for chance-based items’ report culminates in a single recommendation: that the Australian Government “undertake a comprehensive review of loot boxes in video games.”

“ This review should commission further research into the potential for gambling-related harms to be experienced as a result of interaction with loot boxes.

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The report recommends the review be performed by the Department of Communications and the Arts, in conjunction with the Australian Communications and Media Authority, the Australian Competition and Consumer Commission, the Office of the e-Safety Commissioner, the Classification Board, and the Department of Social Services.The report’s response has been subsequently criticised by the Australian Greens with Greens Senator for WA Jordon Steele-John unhappy with the final verdict.“Many loot boxes utilise a number of psychological mechanisms commonly seen in other forms of gambling, including variable ratio reinforcement schedules, entrapment and ready and constant availability,” said Steele-John in a statement supplied following the publication of the report this evening.“Furthermore, it was argued that the risk to children, young people and even vulnerable adults from developing gambling-related harms through interaction with loot boxes was of such significance that regulators should seek to either prohibit or restrict access to games containing loot boxes.“As chair, I sought to follow this evidence and recommended the Parliament take action to ensure that no young person who plays video games is exploited by gambling-like mechanisms.According to Steele-John he was outvoted in this effort by the combined forces of Labor and the Coalition and, as such, the committee’s “considered and appropriate recommendations” were replaced with “a single watered-down recommendation for a government review.”“There was absolutely no mention of similarities between these types of in-game mechanisms and gambling, especially [poker machines], despite the overwhelming evidence presented to the inquiry to the contrary!” said Steele-John.“This enquiry was an opportunity to protect young people from harm. That opportunity has now been lost because the Labor party and coalition government are both in the pockets of the [poker machine] industry and are prepared to put their donations before the safety of young people.”Australia has about 0.3 per cent of the world’s population but has 18 per cent of the world’s poker machines. The report noted that the global video game industry is projected to be worth US$160 billion by 2022, with 47 per cent of the industry’s revenue gleaned from microtransactions. The report conceded that other governments around the world are also currently wrestling with whether or not loot boxes are a form of gambling but came to the conclusion that “a global consensus view on whether loot boxes constitute gambling has not been reached, nor has a uniform approach to dealing with the issue been adopted.”“It is important to note that loot boxes are not a homogenous entity and many variations of the mechanism exist,” the report stated. “In particular, there are a variety of ways in which loot boxes can be acquired including through game-play achievements and through direct purchase using real-world currency. Loot boxes can also differ according to whether the virtual items contained within can be monetised.”“The committee acknowledges the community concern that the inclusion of loot box mechanisms in video games may be normalising gambling and gambling-like behaviour. The committee also acknowledges the concern that children and some vulnerable adults may suffer gambling-related harms as a result of interaction with loot box mechanisms included in video games.”The ‘Gaming micro-transactions for chance-based items’ inquiry was referred to the Environment and Communications References Committee in June this year.Loot box regulation has been a hot topic in a variety of regions for the past 12 months and the responses have been varied, with some countries beginning to enforce bans (including Belgium and the Netherlands ) and others maintaining they don’t fit the criteria for gambling (like New Zealand , the UK and Ireland ).

Luke is Games Editor at IGN's Sydney office. You can find him on Twitter every few days