Central government has taken a significant step to regulate the online gaming sector with new regulations aimed at curbing the negative effects of real money games that involve betting or wagering. Under the new rules, real money games that involve betting or wagering have been banned, while a self-regulatory model has been introduced for the online gaming sector.
The government will notify three self-regulatory organizations (SROs) initially to approve the games that can operate in the country. These SROs will include industry players, gamers, and other stakeholders, but not the government. The SROs will be required to publish a framework to safeguard users against gaming addiction, financial loss, and financial fraud on their website.
The regulations will require games involving real money to comply with KYC norms as per the rules. Any state that is legitimately trying to crack down on betting or gambling will find that these rules are not 'ultra vires' to whatever they are doing, according to the Minister of State for Electronics and IT Rajeev Chandrasekhar.
The introduction of these regulations has been welcomed by industry players, who have described them as a 'watershed moment' and a 'game-changer.' They believe that the new rules will spur innovation, boost investor confidence, and weed out gambling platforms while making the sector globally competitive.
The regulations come at a time when online gaming is rapidly growing in India, with the country's online gaming industry expected to reach $3.7 billion by 2024. However, there have been concerns about the negative effects of online gaming, including addiction, financial loss, and the potential for financial fraud.
Centre's move to regulate the online gaming sector is a step in the right direction to address these concerns. The self-regulatory model and the requirement for SROs to publish a framework to safeguard users are positive steps towards responsible gaming. The regulations will also ensure that only legitimate and safe games are available to Indian gamers.
(With inputs from PTI)
