MeitY announces new gaming rules; real-money gaming to come under SROs
This means the buck is passed on to industry bodies to delve into the intricacies of what games are kosher and which are not
After an initial drafting of amendments in January of this year, the Ministry of Electronics and Information Technology (MeitY) today notified the final changes to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 in relation to online gaming.
The new regulations were developed after discussions held in recent months between the ministry and a diverse range of stakeholders, including gaming companies, esports industry groups, players, and legal authorities.
Among the main changes are that games involving real-money gaming will come under the ambit of three Self Regulating Organizations, though the number of these SROs could be revised at a later date. This means the buck is passed on to industry bodies to delve into the intricacies of what games are kosher and which are not.
Rajeev Chandrasekhar, Union Minister of State for Electronics and IT, said, “These rules don't deal with all the sophistication into what is game of chance or game of skill. You don't need to go to SRO if you are only a gaming company. SRO will determine what comprises user harm and what constitutes addiction.”
This follows several legal tussles between authorities and companies that promoted “games of chance” versus “games of skill”, with the former being equated with gambling and all its attendant vicissitudes while the latter have increasingly been come to be viewed as legitimate pursuits, and include esports and other gaming categories, many of which are now being added as medal sports to the Olympics, Commonwealth Games, and other international sporting competitions.
Roland Landers, CEO, All India Gaming Federation, said, “As the oldest, largest, and most diverse industry association for online gaming in the country, we are grateful to MeitY for notifying the amendments to regulate online gaming under the Indian Information Technology Act, and acknowledging the long-standing demand of the gamers and the online gaming industry.”
“We are especially grateful that the Government recognised the industry demands and provided light touch, but comprehensive regulations, which will support innovation, boost Create in India and Brand India, and propel India’s ‘Techade’,” he added.
Industry leaders says these rules will go a long way in promoting consumer interest while helping the industry grow responsibly and transparently and will also help in curbing the menace of anti-national and illegal offshore gambling sites, which have been proliferating in the last few years.
“We look forward to assisting the industry transition to the self-regulatory model envisioned under the rules and use learnings from the years of work that has been undertaken at the All India Skill Games Council (AIGSC), the oldest and largest voluntary self-regulatory body for online gaming,” said Landers.
According to a report, the Indian domestic market for online gaming is estimated to grow to more than 1500 Cr INR in 2023 representing a CAGR of nearly 22 percent.
Joy Bhattacharjya, Director-General, Federation of Indian Fantasy Sports (FIFS) , said the notification of MeitY rules marks a pivotal moment for the online gaming industry in India, as they are expected to put an end to the ambiguities that the industry was grappling with and lay the foundation for sustainable and responsible growth of the industry.
“India’s online gaming industry has already attracted $2.5B in FDI and we are hopeful that this will propel the industry to great heights and encourage innovation. We look forward to engaging with MeitY to seek requisite clarifications as our members initiate the compliance process,” said Bhattacharjya.
Trivikraman Thampy, co-founder and co-CEO, Games24x7, says that with consumer protection and responsible gaming at the forefront, the regulatory framework will aid in arresting the proliferation of offshore and illegal gambling and betting platforms in India, which operate with little regard for consumer interest.
“Many of the rules that will come into effect with this amendment including age verification, responsible gaming practices etc are already being followed by us as part of the code of conduct of E-Gaming Federation (EGF) of which we are members,” said Thampy.
