Europe's gaming regulator is making one of the most significant changes to its rating system in history, fundamentally reshaping how games with monetisation mechanics are classified. Starting in June, PEGI will introduce four new categories to its age-ratings criteria, with games containing paid random items receiving a default rating of PEGI 16, meaning they cannot legally be sold to children 15 or under in European countries that have adopted PEGI ratings into their legislation.
The shift reflects growing international concern about the overlap between loot boxes and gambling mechanics. The new categories target addictive content and paid content in video games such as loot boxes, with four new additions: in-app purchases, paid random items, play by appointment, and online community, described by PEGI director general Dirk Bosmans as probably the most significant update in their history.
The practical consequences are stark. EA Sports FC, currently rated PEGI 3, will move to PEGI 16 when EA Sports FC 27 is submitted under the new rules, unless EA removes loot boxes from its Ultimate Team mode, which almost certainly won't happen given how much income it generates from them. The same logic applies to numerous other live-service games that depend on randomised monetisation for revenue.
Games with time-limited or quantity-limited offers will be classed as PEGI 12, while anything with NFTs or blockchain-related mechanisms will instantly be rated PEGI 18, and games with entirely unrestricted online communication will also be rated PEGI 18.
The contrast with North America is instructive. The US Entertainment Software Rating Board (ESRB) has decided against following PEGI's lead. According to ESRB research showing that less than a third of parents have heard of a loot box and know what it is, as the phrase is widely understood in the gaming industry but most people less familiar with games do not understand it. The board argues this gap justifies its current approach.
Instead of integrating monetisation factors into age ratings themselves, the ESRB maintains a separate labelling system that flags games with random purchases as an "interactive element" alongside the main age rating. The board contends this approach gives parents more granular information. "ESRB's research indicates that parents want upfront notice about features like online communications and the ability to spend real money on in-game purchases," an ESRB spokesperson said, "but that it could be confusing if non-content related features influence rating category assignments."
PEGI's leadership has acknowledged the tension. Director general Dirk Bosmans noted that "if we add this, are parents losing information? You do want to inform them both about the content, and the context, of video games. But by integrating them both into an age rating, you have to be mindful that you may not be able to give all the levels of detail that you gave beforehand."
Germany's USK system, which PEGI worked closely with on these changes, offers some evidence that the approach works. At least one of the new USK criteria has been applied to approximately 30 per cent of all games submitted since the system was updated, with around 1 in 3 of those games given a higher age rating as a result.
For Australian players, the divergence matters. In late 2024, the Australian Classification Board deemed that any videogame with in-game purchases with an element of chance, such as paid loot boxes, would default to an M rating, meaning they are not recommended for anyone under the age of 15, aligning Australia's approach more closely with PEGI's new direction than the ESRB's.
Both regulatory systems face a genuine dilemma. Loot boxes and battle passes do create incentives that operate differently from traditional game content. They encourage repeated engagement and spending in ways that violence, language, or sexual content do not. The question is whether age ratings should reflect this reality by incorporating monetisation into category assignments, or whether preserving detailed supplementary information is the better approach. New rules will only apply to newly submitted games from June 2026 onwards, meaning existing titles with loot boxes won't be getting new ratings, though PEGI has indicated it will examine some legacy products on a case-by-case basis.