The industry said on Thursday that the new rules for online gaming will spur innovation, boost investor confidence and eliminate gambling platforms, while making the sector globally competitive.
The regulations are expected to help reduce regulatory fragmentation at the state level and promote a more stable business environment, the industry said with one voice, describing the regulations as a “watershed moment”, “watershed” and “milestone”.
The All India Gaming Federation (AIGF) called it a decisive first step towards comprehensive regulation for online gaming, which will boost the industry to compete globally, while WinZO gaming said the move “really brings about the emergence of a global gaming industry here in India”.
The government on Thursday unveiled new online gaming rules that prohibit games that involve betting and wagering and involve an institutional framework of various self-regulatory organizations (SROs) to determine the permissibility of online gambling.
Under the rules, SROs (three SROs will be notified to start) will have to post a framework to protect users against the risk of gambling addiction, financial loss and financial fraud on their website.
The framework should include more frequently repeated warning messages plus a reasonable duration for a game session and provision to allow a user to opt out when user-defined limits are reached for time or money spent.
“…we are grateful to MeitY (Ministry of IT) for notifying the amendments to regulate online gaming under the Information Technology Act of India and recognizing the long-standing demand from players and the online gaming industry,” said Roland Landers, CEO of the All India Gaming Federation.
The government has recognized industry demands and has provided light touch but comprehensive regulations, which will support innovation, drive Create in India and Brand India and drive India’s Techade, Landers said.
According to the All India Gaming Federation, the rules will go a long way in promoting consumer interest, helping the industry to grow in a responsible and transparent manner, and also curb the threat of illegal and anti-national gambling sites, which have proliferated in recent years.
“We look forward to helping the industry transition to the self-regulatory model envisioned in the rules and using the lessons learned 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.
The government has maintained “a very open and transparent approach” throughout this process and has listened to various stakeholders across the online gaming ecosystem since May 2022, AIGF said, pledging its support to the government to make online gaming a cornerstone of India’s $1 trillion digital economy (nearly Rs. 81,86,175).
The Mobile Premier League (MPL) described the release of the new online gaming rules as a game changer for the industry “as it recognizes the intermediaries of online gaming and distinguishes it from gambling”.
“The rules will greatly help us to realize our Prime Minister’s vision for India to become a global leader in gaming and also contribute to the continued success of Brand India and Create in India,” said Sai Srinivas, CEO and co-founder of MPL.
The uniform legal framework provided by these rules will increase investor confidence.
“We anticipate that this will also help reduce regulatory fragmentation at the state level, as also mentioned by Hon’ble Ministro, create a more stable business environment and eliminate gaming platforms,” said MPL’s Srinivas.
He said that with the transition to the self-regulatory model that will be recognized by MeitY, MPL looks forward to working collaboratively with industry peers and other stakeholders.
“We believe this effort will help create a thriving and sustainable gaming ecosystem in India,” said Srinivas.
Paavan Nanda, co-founder of WinZO games, said the lightweight central regulatory mechanism is a game changer for the world’s largest gaming market, India.
“The general recognition of Online Skill Games through inclusion as the third form of intermediary after Social Media and OTT publishers/players related to content is beneficial for differentiating GST from gambling, providing the necessary regulatory stability and facilitating a level playing field for all games of skill,” said Nanda.
WinZO Games commended the Center for taking very strong measures to protect Indian consumers from illegal offshore betting and gambling under these provisions.
“The bill authorizes the government, via MeitY, to take the necessary steps to determine whether an online platform is a gaming platform or a betting platform and accordingly to initiate immediate action against betting platforms, particularly offshore betting platforms under section 69(a) of the IT Act,” said Nanda of WinZO games.
This is very positive news for both the industry and the end consumer, creating a safe and responsible internet.
Nitish Mittersain, founder and CEO of Nazara Technologies, said the notified rules are historic steps that will help the gaming industry immensely and provide a lot of clarity in the industry.
Ranjana Adhikari, partner at IndusLaw, said the online gaming rules are a positive step in the right direction and put the central government in charge of regulating online gaming.
“The lightweight approach and self-regulatory mechanism proposed by the central government is progressive and keeps the law nimble for a fast-paced and evolving industry,” according to IndusLaw.
Malay Kumar Shukla, secretary of the e-Gaming Federation, said the rules will play a key role in bringing transparency, ensuring player protection, attracting investment, boosting investor confidence and creating job opportunities.
“We are grateful to the government for recognizing the industry’s longstanding need to bring regulatory clarity by prioritizing and notifying regulations,” said Shukla.
General betting and betting guidelines will protect players and the industry at large by distinguishing legitimate skill game operators from illegitimate and unauthorized betting and gambling operators.