India closer to having separate eGaming regulator

The government of India seems to be moving away from the idea of self-regulation and toward setting up its own eGaming regulator.

In the near future, the Union Ministry of Electronics and Information Technology (MeitY) will receive a recommendation from the National Law University (NLU) of Delhi on significant modifications to the laws governing online gambling.

This tactical shift in direction is consistent with MeitY’s goal to create an impartial regulatory body to oversee eGaming services and restrict their use to Indian registered businesses.

NLU Delhi is reportedly actively engaging with industry stakeholders to shape the course of future gaming regulations in collaboration with the eGaming Federation (EGF). Assistant professor Raghav Pandey of NLU commended these cooperative efforts, highlighting ongoing roundtable discussions meant to collect diverse stakeholder perspectives in order to promote the creation of solid regulations.

Understanding the need of sound regulations in the gaming sector, Pandey stressed the need to strike a balance between regulatory supervision and industry expansion. He emphasized that in order to solve the main regulatory issues the business is experiencing, extensive consultation processes and thorough study are required.

Prior to the IT Rules 2023, the government suggested setting up self-regulatory groups for the gaming industry. However, MeitY was forced to reevaluate due to worries about potential industry influence over these committees, which led to the proposal’s cancelation in the first part of 2024.

The growing online gaming industry in India has been requesting legislative clarity to make the distinction between gambling and legitimate gaming. As they navigate issues like money laundering and exorbitant taxes, major participants like Dream11, Mobile Premier League, Deltatech Gaming, Nazara, and Games24x7 are eagerly awaiting regulatory guidelines.

The CEO of the eGaming Federation, Anuraag Saxena, praised the government for acknowledging the need for regulatory clarity in the sector. He highlighted the $3 billion gaming market size and the fact that 80 percent of revenue comes from real-money platforms in order to highlight the industry’s important contributions to India’s digital economy. Additionally, Saxena referenced a Winzo Games report that forecasted India’s robust expansion as a gaming market in 2023, with over 9.5 billion gaming app downloads and 568 million gamers.

Saxena commended the government for taking a proactive stance and emphasized that supportive regulatory laws would protect customers, promote responsible industry growth, uphold moral principles, and successfully handle societal worries around internet gaming.

Original story by: Asia Gaming Brief