Document 2
From:
Mark Thornton
To:
Lloyd Bezett
Subject:
Loot boxes
Date:
Friday, 13 October 2017 9:58:06 AM
Attachments:
image001.png
Hi Lloyd,
Don’t know if you’ve seen this https://www.kotaku.com.au/2017/10/esrb-says-it-doesnt-see-loot-
boxes-as-gambling/
In the comments below the article there is an interesting analogy comparing loot boxes to Kinder
Surprises…
Cheers,
Mark
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Dr Mark Thornton | Senior Advisor Operational Policy
The Department of Internal Affairs Te Tari Taiwhenua
Direct Dial: +64 4 495 6086 | Extn: 5186 | Mobile: +64 21 0690 443
147 Lambton Quay | PO Box 805, Wellington 6140, New Zealand |  www.dia govt.nz
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Document 3
From:
Lloyd Bezett
To:
Heather McShane
Subject:
RE: Problem Gambling Foundation - Game Lootboxes
Date:
Thursday, 16 November 2017 9:36:46 AM
Hi Heather
The initial question relates to classification of video games. Currently “gambling” is not one of
the criteria under which a publication can be classified as objectionable or restricted.  The
presence of gambling in a game does appear as a warning in other countries, particularly those
using the PEGI classification system. This is more of a consumer advisory for parents,
While adding “gambling” into the Classification Act would require a decision by the Minister of
Justice, it might be possible for the OFLC to include the presence of gambling to the descriptive
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note. However, that would require the OFLC have a clear description of what constitutes
gambling. Can the OFLC put thing in the descriptive note if that issue played no part in their
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classification of a publication?
I’m not sure what proportion of video games are actually distributed in NZ. All the games I buy
are over the internet from servers located overseas. Strictly speaking these game are not sold in
NZ; I’m importing them for personal use so they are not subject to NZ classification anyway.
I’ll chat to Legal Services on Friday before I draft something up.
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Looks like everything is converging.
OFFICIAL
Lloyd Bezett | Senior Policy Advisor  | Operational Policy | Regulatory Services
Direct Dial: +64 4 495 9367 | Extn: 5367THE
From: Heather McShane UNDER
Sent: Thursday, 16 November 2017 8:53 AM
To: Lloyd Bezett
Subject: FW: Problem Gambling Foundation - Video Game Lootboxes
Hi Lloyd
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I’m wondering if we need to get some legal advice on this.  Can you have a go at drafting a
request for legal advice for us to think about before sending it to Legal Services.  We’d need to
talk to Gareth about the implications of getting legal advice on this before we actually sent the
request through.
I’ll find out where Lisa Osborne is up to with her piece on online gambling and whether she has
covered this sort of thing.
Thanks, Heather
From: Jason Hewett

Sent: Thursday, 16 November 2017 7:10 AM
To: Heather McShane
Subject: FW: Problem Gambling Foundation - Video Game Lootboxes
Morning Heather
Is this a topic you are familiar with? Is it something within our gambit and as such something the
Minister would respond to?
Cheers
Jason
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Jason Hewett
Private Secretary for the Minister of Internal Affairs
ACT
Hon Tracey Martin
5.3L Executive Wing | Parliament Buildings
DDI: 04 817 8340 | M: 021 420 602 | E: [email address]
From: T Martin (MIN)
Sent: Wednesday, 15 November 2017 8:32 AM
To: Jason Hewett <[email address]> INFORMATION
Subject: FW: Problem Gambling Foundation - Video Game Lootboxes
Morning Jason
Overnight we have received quite a few emails relating to video game regulations.
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Does this fall within Internal Affairs portfolio? If so, I will log each one and send through.
THE
Thanks,
Annika
UNDER
Annika Rodstrom | Private Secretary – Executive Support | Office of Hon Tracey Martin
Minister for Children | Minister for Seniors | Minister of Internal Affairs | Associate Minister of Education
Parliament Buildings | Wellington 6160 | New Zealand |Tel +64 4 817 8718 |
[email address]
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From:
]
Section 9(2)(a) of the OIA.
Sent: Tuesday, 14 November 2017 2:30 PM
To: W Peters (MIN) <[email address]>; T Martin (MIN)
<[email address]>
Subject: Problem Gambling Foundation - Video Game Lootboxes
Mr. Peters, Ms. Martin,

I am writing to you in relation to the position of the NZ Problem Gambling Foundation
from this article at The Wireless: http://thewireless.co.nz/articles/are-video-games-turning-
young-people-into-gamblers.
I would like to voice my support for the position of the NZPGF in this respect. The use of
'lootboxes' in video games is gambling, pure and simple. I am 42 years old and I grew up
playing video games. It used to be that when you bought a game, you bought it and that
was it. Later, it became possible to purchase significant additional content (such as an
entirely new campaign, or a set of new multiplayer maps) for additional money.
This, I do not necessarily have a problem with: those older expansions represented a lot of
additional game, and you knew exactly what was in the expansion before you bought it.
Usually, also, it came out months or even a year after the initial game.
In the last 10 years or so, though, the industry has been heading towards locking away
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important parts of the game behind randomised items at a low rate. And, surprise, they also
offer you the option to buy a bunch of these randomised items for money, so as to increase
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your chances of getting something. Spending money in order to gain a chance at obtaining
some benefit is the literal definition of gambling.
The current brouhaha in the gaming community is around Electronic Arts and their
treatment of Star Wars Battlefront II (see here: https://www.reddit.com/r/pcgaming/ for
some quite robust discussions around this game right now). This is a particularly insidious
example because the nature of Star Wars appeals to small children, but it is by no means
the only one.
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My son is 11 years old. He is now coming into an age where I can start to share more
grown-up experiences with him, including less kid-focused games. However, a few weeks
ago I saw him literally throw his headphones at his computer and storm off to his room to
cry. It turned out he had been playing a game in an online world called Roblox. This
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particular game offered loot boxes, and he had received a 'rare' item in one. About 5
minutes later, he lost it in battle with another player, and this precipitated the outburst.
THE
Why should this affect him? It cost him nothing to get, and it cost him nothing to lose. But
the game is designed to hook you: he wanted to pay for more lootboxes to get it back, and
that's exactly the reaction being aimed for.
UNDER
We rightly have regulations around other potentially harmful activities - legal gambling,
smoking, sex, etc. to minimise exposure to these things to children who aren't ready to deal
with them. These lootboxes are designed to be as addictive as any other form of gambling.
I can protect my own children to some extent - we won't have Star Wars Battlefront II in
our house, for example, even though I am as big a Star Wars fan as my son - but it's
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impossible to be there all the time.
I urge you to introduce mandatory requirements for games sold in New Zealand with
lootboxes or any similar scheme to lock away game content behind random items to be
given an R/Adult rating, and illegal to sell to minors.
--
Cheers
Section 9(2)(a) of the OIA.

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Section 9(2)(h) of the OIA
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Document 10
From:
Trish Millward
To:
Gareth Bostock; Cath Anyan; Heather McShane
Cc:
Poni Lealofi; Lloyd Bezett
Subject:
FW: Loot Boxes
Date:
Tuesday, 21 November 2017 5:03:00 PM
Attachments:
image001.png
image002.png
Hi All
Just an fyi re the loot box issue.   Poni had has about ten emails to the Gambling Compliance
inbox and I note there are quite a number of Ministerial’s regarding them.
The approach we are adopting is as quoted in the stuff article below.  Interesting that the article
is quoting directly from our response to the email.
We contacted the gambling unit at the Department of Internal Affairs
after receiving enquiries, and they said:
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"Gambling, as defined in the Gambling Act, means paying or staking
consideration, directly or indirectly, on the outcome of something
seeking to win money (or money's worth) when the outcome depends
wholly or partly on chance. The Department considers 'loot boxes' as a
marketing tactic within computer games that use psychology to reward
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players and encourage them to spend more on the game. While the
exact contents of a loot box may be unknown at time of purchase, the
payment of the charge does purchase a box. This does not appear to
meet the definition of gambling.
"Even if this was gambling, only the gambling that is conducted in New
Zealand is subject to the provisions of the Gambling Act. New
Zealanders are able to lawfully gamble on overseas websites but they
do so at their own risk."
To ensure we stay connected/consistent with our responses, Poni is liaising with Lloyd.  Can we
also be copied in on the Ministerial response once it is drafted please.
Heather/Lloyd It might be useful if we had some generic advice from operational policy to
circulate to all GCG.
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Thanks
Trish Millward | Manager Licensing Compliance | Regulatory Services
The Department of Internal Affairs Te Tari Taiwhenua
Direct Dial: +64 4 494 0551| Mobile: +64 27 538 9946
Our Vision Ta Matou Matakite
We regulate for a safe, transparent and trusted gambling sector that benefits communities
E whakarite ture ana matau mo tetahi rangai petipeti haumaru, marama, tika hoki e whai hua ana nga hapori.

Document 11
From:
Lisa Doyle
To:
Lloyd Bezett
Cc:
Keren Ross
Subject:
FW: More "Loot Box" media coverage
Date:
Tuesday, 21 November 2017 11:24:19 AM
Attachments:
image001.jpg
FYI – an article re ‘loot boxes’.
The Department is quoted as saying, "Gambling, as defined in the Gambling Act, means paying or
staking consideration, directly or indirectly, on the outcome of something seeking to win money
(or money's worth) when the outcome depends wholly or partly on chance. The Department
considers 'loot boxes' as a marketing tactic within computer games that use psychology to
reward players and encourage them to spend more on the game. While the exact contents of a
loot box may be unknown at time of purchase, the payment of the charge does purchase a box.
This does not appear to meet the definition of gambling."
From: Louise Cavanagh
ACT 1982
Sent: Tuesday, 21 November 2017 11:20 AM
To: Keren Ross; Lisa Doyle
Subject: FW: More "Loot Box" media coverage
From: Michael Cassidy
Sent: Tuesday, 21 November 2017 11:19 AM
INFORMATION
To: Heather McShane; Bruce Manuge; Manuel Pedreschi; Louise Cavanagh; Lloyd Bezett
Subject: More "Loot Box" media coverage
FYI
https://www.stuff.co.nz/business/opinion-analysis/99080950/a-beginners-guide-to-loot-boxes--
harmless-fun-or-gambling
Mike
Michael Cassidy | Manager Gaming Technology
The Department of Internal Affairs Te Tari Taiwhenua
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Direct Dial: +64 4 495 7205 | Extn: 5205 | Fax: +64 4 494 0656 | Mobile: +64 21 870 247
46 Waring Taylor St | PO Box 805, Wellington 6140, New Zealand | www.dia.govt.nz
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