The recent move by representatives of the video gaming industry in India has sparked a fresh debate on the regulation of online gaming. In a letter addressed to the Ministry of Electronics, Information and Technology (MeitY), they have requested that video games be treated as separate entities from real money games, which involve wagering of actual money.
Draft Rules for Online Gaming and Industry Concerns
The MeitY has released draft rules for online gaming as an amendment to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. Video game industry representatives are now urging MeitY, being the nodal agency for ‘online gaming’, to acknowledge the distinct differences between their industry and ‘real money games’.
A proposed self-regulatory body under the recent amendments would certify online games permissible in India. The current draft merges ‘video games’ and ‘online games played for stakes’ into the same regulatory ambit, raising concerns among gaming companies. They argue that no other countries recognize and regulate these two different gaming categories in the same way.
Gaming companies are worried about the blurred lines between them and the ‘real money games’, which often inhabit a grey area due to the state rules and gambling laws. They emphasize that their games do not stake money and are purely for entertainment purposes.
Differentiating Video Games from iGaming Industry
Industry representatives further indicate that Real Money Games and Fantasy Sports collectively form what is known as the ‘iGaming Industry’ in other countries. The call for clarity between ‘video games’ and ‘iGaming’, according to them, is essential to the growth and development of the video gaming sector in India.
The Need for A Suitable Framework
For India to produce world-class video games that cater to a global audience, it is crucial to establish an appropriate framework that respects industry nuances and aligns with international best practices. Such a structure would not only attract capital but also enhance market access, increase foreign technology collaboration, build talent pools, and aid in the development of global champions from India.
Regulations and Self-Regulatory Bodies
One proposed solution is to regulate video games through an India-specific age and content rating mechanism. A self-regulatory body (SRB) specific to the video game industry could be established, similar to existing global standards such as PEGI (Pan-European Game Information) in the EU and ESRB (Entertainment Software Rating Board) in North America.
Addressing Issues Related to Children’s Addition and Online Harm
There is also a need to create a robust framework to address issues like children’s addiction to video games, their exposure to in-game purchases, age-inappropriate content, and online harm. These issues could fall under the purview of the game industry-specific SRB, with regulations aligning with global standards such as COPPA (Children’s Online Privacy Protection Rule) in the USA and GDPR (General Data Protection Regulation) in the EU.
