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By default avatars will be allowed for your users when they log into the chat room, but not displayed by default.
Users do have the ability to turn avatars on via the Options menu after then log into the chat room. To display avatars by default complete the following steps.
Step 1.
Log into your Service Administration Area and navigate to Site Settings > Site-Wide Settings.

Step 2.
Navigate to Avatars >> Display Avatars by Default and select Enabled (this can be seen in red above).
Display Avatars by Default
Enabled - will allow users to see the My Avatar selection under the Options menu and have the Show Avatars selected under the Options menu. (see example below)
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Disabled - will allow users to see the My Avatar selection under the Options menu and allow users to see the Show Avatars un-selected under the Options menu. (see example below)
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Parameter Name: Val.Avatar
Parameter Permitted Value: true or false
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HTML Configuration: <param name="Val.Avatar" value="false">
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