• Government panel calls for regulatory body and new law for online gaming: Report

    Sci & Tech
    Government panel calls for regulatory body and new law for online gaming: Report

    It comes amid growing worries that video games might lead to addiction and that "inconsistent state legislation" can hurt the economy. color:black;mso-themecolor:text1">

    color:black;mso-themecolor:text1">Digital Desk: According to a government
    panel's study seen by Reuters, India should establish a regulatory organization
    to categorize online games as being based on skill or chance, enact regulations
    to restrict forbidden formats, and adopt stronger regulations regarding
    gambling websites.



    In the country's online gaming
    industry, where foreign investors like Tiger Global and Sequoia Capital have
    backed gaming startups Dream11 and Mobile Premier League, which are wildly
    popular for fantasy cricket, top officials from Prime Minister Narendra Modi's
    administration have been drafting regulations for months.



    The eagerly anticipated report is
    expected to influence the direction of India's mobile gaming market, which is
    predicted to grow from $1.5 billion this year to $5 billion by 2025. It comes
    amid growing worries that video games might lead to addiction and that
    "inconsistent state legislation" can hurt the economy.



    Even the definition of games has
    been contested. Rummy, a card game, and a few other fantasy games are deemed
    skill-based and acceptable by India's Supreme Court, while at least one state
    court deemed games like poker to be more like gambling, which is illegal in
    most states.



    color:black">The panel of government representatives recommends the
    establishment of a new regulatory agency under India's IT ministry to choose
    which online games qualify as games of skill before "seek compliances and
    enforcement" in its confidential draught report dated Aug. 31.



    According to the 108-page
    research, India needs a new federal online gaming law that will give regulatory
    flexibility and grant the government "blocking powers against unlawful
    gaming formats" in order to streamline the legal system.



    color:black">The panel stated that several offshore betting and gambling
    websites that are banned in India have grown popular among Indian users even
    though it only looked at online skill games and not gambling, which is governed
    by states. Both free and for-pay versions of skill games would fall under the
    new regulatory framework.



    color:black">"On the aspect of prohibiting games of chance (e.g. gambling
    websites or apps) being played online, the proposed Digital India Act can
    include it in the list of prohibited user harms that will not be
    permitted," the report stated.



    Although the federal government
    might label chance-based games as dangerous, it would let states make the final
    decision on whether to permit gambling, according to a senior government
    source.



    color:black">In order to make sure that no users in their area are accessing
    illicit gambling or gaming, the research highlighted that state governments
    already find it "difficult to install and monitor geo-fencing
    measures."



    color:black">The IT ministry will finalize the report after receiving further
    comments from panel members, who are some of Modi's top bureaucrats, including
    the Heads of the Revenue and Sports ministries. It will then be sent to the
    cabinet secretariat for approval, though there is no timeline for finalization.



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