Lately, so-called social casino applications have been criticised for not allowing players to cash out their winnings although they pay to play. Now, pressure is building for virtual poker machines, as campaigners call for the Australian authorities to finally regulate them as online gambling.
For example, Slotomania, a mobile phone game that was developed by Playtika, an Israel-based company, almost looks like any other electronic poker machine. Players spend tens of thousands of dollars into the game hoping to generate significant winnings but there is one major difference between this game and other electronic pokies – they are not allowed to withdraw the winnings they generate. As a result, neither Slotomania nor other social casino games like it are considered a form of gambling, so they remain unregulated by the Australian laws under which unlicensed online gambling is currently banned in the country.
At the same time, social casino apps remain a lucrative business. For instance, Playtika reported revenue of over $2.5 billion in 2021, and a profit worth $308 million.
However, the situation might soon change for operators of such online casino games. According to reports, the law that allows such games to operate in this way is set to be scrutinised by a parliamentary inquiry that is investigating the state of the country’s online gambling regulation, as well as the harm that these services inflict on people.
Social Casino Apps Not Considered a Form of Gambling under Current Australian Gambling Laws
Peta Murphy, a Member of Parliament from the Labour Party who chairs the Committee, confirmed that virtual gambling is currently widespread in Australia. Apart from that, she said there was evidence that the aforementioned simulated gambling either led people to other forms of gambling or got players hooked on social casino apps.
The aforementioned parliamentary inquiry is set to also look at similar game developments in foreign countries that have already legally recognised social casinos as a form of gambling. As previously reported, some European countries, including Belgium, have made a step further and decided that in-game items, or so-called loot box mechanisms in video games that allow players to pay for the chance to win a special item, hero, or a game booster are, in fact, a form of gambling. Now, the Australian Government wants to get some evidence on the matter.
The director of policy and campaigns at Financial Counselling Australia, Lauren Levin, noted there has been mounting evidence that virtual games can actually cause harm as serious as the one caused by regular poker machines, also known as pokies. She shared that gambling financial counsellors were concerned about the amount of money that was being lost by Australian people while playing social casino games and as a result of gaming addictions that were developing as a result of compulsive gaming habits.
Furthermore, Ms Levin noted that gambling watchdogs across Australia were quite behind the times and their work needed an overall review in order to make sure their regulatory work was effective. According to her, the definition of gambling needed to change, too. She explained that, in her opinion, social casino games either needed to be suspended in the country, or they needed to be regulated as a form of gambling and saw safe limits and other safeguards adopted to ensure customer protection.
For the time being, online gambling in the country is regulated under the provisions of the Interactive Gambling Act (IGA) by the Australian Communications and Media Authority (ACMA). As mentioned above, under the IGA video games offering chance-based components such as loot boxes or simulated gambling, as well as social casino apps, are not categorised as gambling services. The reason for such classification is the fact that such games are not played for money or other value, which is required as an important element for a game to be considered a gambling service.
- Author
Daniel Williams
