India’s Planned Regulation of Online Gaming to Include all Real-Money Games
India’s much-anticipated regulation of online gaming is set to encompass all real-money games, according to a government document and three reliable sources. Initially, there was a proposal to only regulate games of skill and exclude games of chance, but the prime minister’s office overturned this decision.
This regulation is expected to significantly impact India’s gaming sector, which is projected to be valued at $7 billion (roughly Rs. 57,000 crore) by 2026, primarily driven by real-money games. Notable investors such as Tiger Global and Sequoia Capital have already shown their support for Indian startups Dream11 and Mobile Premier League, which are renowned for their fantasy cricket platforms.
A committee in charge of drafting the regulation suggested the creation of a new body to determine whether a game is predominantly skill-based or involves an element of chance. Skill-based games would then be subject to the proposed federal rules that include registration requirements, know-your-customer norms, and a mechanism for grievance redressal.
Games of chance, considered similar to gambling (which is mostly prohibited across India), were intended to be under the jurisdiction of individual state governments, giving them the freedom to regulate and oversee these activities, as previously reported by Reuters.
However, during a government meeting on October 26th, an official from Prime Minister Narendra Modi’s office opposed this distinction and called for increased oversight for all types of games, as stated in the confidential meeting minutes reviewed by Reuters.
The official cited challenges in differentiating games as skill-based or chance-based due to a lack of legal clarity and contradictory court decisions, suggesting that online gaming should be considered a unified activity or service with no distinction.
The definition of games has been a contentious issue in India. While the country’s Supreme Court considers the card game rummy and certain fantasy games to be skill-based and legal, various state-specific courts have expressed different opinions on games like poker.
Requests for comment from Modi’s office and the Ministry of Information Technology, responsible for drafting the rules, went unanswered.
Three individuals directly involved in the rule-making process, including two government officials in New Delhi, confirmed to Reuters that the new rules will grant federal authorities broader oversight over all types of games. However, state governments will retain the power to impose outright bans on gambling or games of chance.
These new regulations come in response to mounting concerns about the proliferation of such games, particularly among young people, leading to addiction and financial losses, with reported instances of suicide.
One government source revealed that Modi’s administration remains deeply concerned about the potential addictiveness of these platforms.
The committee’s August report recommended incorporating “de-addiction measures” in the new rules, including periodic warnings and advisories, as well as setting deposit and withdrawal limits.
© Thomson Reuters 2022
Denial of responsibility! TechCodex is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
