India Establishes Online Gaming Regulations, Resistance Remains - Newstbt.com

Following months of debate over what constitutes ‘gambling’ or not, the Indian Ministry of Electronics and IT (MeitY) issued a draft bill on Monday which could pave the way for online gambling in India. The draft bill is now available for review, suggesting that India is ready to embrace the future of online gambling.

Narendra Modi, the Prime Minister of India, gestured during a public appearance while India looks to move forward with legalization of online gambling. Regulatory measures in the legislation draft include enforced customer complaints and procedures as well as the requirement that operators must register games with regulators and offer only approved games. However, the draft does not address online sports betting related to the outcome of games, which many argue requires “skill” unlike traditional gambling. Notably, the draft does not include a gender-based approach for the regulations. (Image: Getty Images)

Gender-Based Approach

Rajeev Chandrasekhar, Minister of State for Electronics and IT, revealed that about 40%-45% of gamers in India are female, leading to the development of rules to “keep the gaming ecosystem safe.” Furthermore, he noted that as an integral part of the global startup ecosystem, online gambling is a trillion-dollar economy. Chandrasekhar promised that the government would support startups and innovators in the gaming industry and drafted rules promoting responsible gambling as part of India’s 2021 Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules. These regulations seek to regulate the online gambling system, eradicate the black market gambling industry, and place due diligence on the gambling sector. Lastly, India’s online gaming segment will create a self-regulatory organization.

The MeitY (Ministry of Electronics and Information Technology) is in the process of drafting the regulations for the gaming industry in India. These regulations will be led by a board of directors composed of experts from various respective fields such as online gaming, public policy, IT, psychology, and medicine. These rules will ensure that the contents of games abide by, and do not violate, the “sovereignty and integrity of India”, part of which includes avoiding content with violence, addiction, and sexuality. Despite, the potential of various self-regulators, certain regulations will remain consistent, such as KYC measures and sources of funds verifications which will be monitored and regulated by the Reserve Bank of India. The final draft of the regulations is expected to take shape soon, and the MeitY invites feedback from the industry to establish fair and robust regulations. The future of online gaming in India is promising indeed!

Online Gaming Holds Promise

A report by venture capital firm Sequoia and management consulting company BCG has predicted that the online gambling industry in India would generate INR413.22 billion (US$5 billion) in revenue by the year 2025. Government figures show that between 2017 and 2020, the industry grew 38%, with 8% growth in China and 10% growth in the US. This indicates that over the period 2024 to 2025, Sequoia and BCG foresees a Compound Annual Growth Rate of 15% and a reach of INR153 billion (US$1.85 billion). The gaming industry has welcomed this news, appreciating the probable greater stability and chance of growth that it will bring. Having various Indian states come up with their own stances on gambling renders a fragmented landscape; therefore, in light of this news, a nationwide approach is being widely advocated for in order to bring uniformity to the area.