Online gaming has become a popular trend in India, thanks to the widespread use of digital technology. The regulation of this industry, however, has become a focus of concern amongst authorities and the public. This article dives into the proposed steps by the Ministry of Electronics and Information Technology (MeitY) towards regulating the online gaming industry through a task force.
A Look at the Task Force’s Recommendations
The task force created by MeitY has recommended some measures to bring order to the online gaming sector. Firstly, it suggests a central-level law be established for online gaming, including both real money and free games of skill such as e-sports, fantasy sports, and card games. However, they recommend that casual games with no real money stakes should be exempted unless they garner high user numbers.
The Need for a Regulatory Body for Online Gaming
A significant recommendation made by the task force is creating a regulatory body specifically for the online gaming industry. This body would be in charge of determining what constitutes a game of skill versus a game of chance. It would also certify different gaming formats and ensure compliance and enforcement of necessary rules.
Three-Tier Dispute Resolution Mechanism
The task force has further advised the establishment of a three-tier dispute resolution mechanism. This system would comprise a grievance redressal system at the gaming platform level, a self-regulatory body for the industry, and an oversight committee led by the government.
The Importance of Legal Entity Status for Online Gaming Platforms
To operate legally in the Indian market, online gaming platforms must now incorporate as a legal entity under Indian law. The task force recommends that these platforms should also act as reporting entities under the Prevention of Money Laundering Act, 2002.
Role of Different Ministries in Regulating the Sector
Several ministries are set to play a role in regulating the online gaming industry. While MeitY would be the leading ministry, other bodies such as the Information and Broadcasting Ministry and the Consumer Affairs Ministry would handle aspects of the industry related to advertisements and unfair trade practices, respectively.
Rationale for Central-Level Law
Despite gaming being a state subject so far, state governments have struggled with law enforcement and implementation. The creation of central-level law would standardize rules across states, making regulation consistent and more manageable. Furthermore, introduction of central-level law would address societal concerns arising from the increasing popularity of gaming and fill gaps in the regulatory framework concerning player protection measures and prohibition of misleading advertisements.
Size and Growth of India’s Online Gaming Market
The Indian mobile gaming industry has seen rapid growth, with revenues expected to surpass USD 1.5 billion in 2022 and possibly reach USD 5 billion by 2025. This growth is reflected in the steady increase of New Paying Users (NPUs) in gaming in India.
Future Directions for the Industry
To ensure that India’s e-gaming sector continues to grow and maximize revenue, certain measures need to be put in place. These include a robust policy framework and digital infrastructure. The cooperation between the government and gaming companies is crucial in implementing these policies effectively.
This task force’s recommendations are seen as a promising step towards a more structured and secure online gaming industry in India, providing a roadmap for both industry players and regulators.