India might be a step closer to receiving its own eGaming regulator, as the government moves away from the idea of self-regulation.
The National Law University (NLU) Delhi is gearing up to recommend significant changes in online gaming regulations to the Union Ministry of Electronics and Information Technology (MeitY) in the near future. This shift in approach comes as MeitY moves away from the idea of self-regulation within the online gaming industry, instead proposing the establishment of an independent regulatory body to oversee eGaming services and restrict them to registered entities within India.
According to insights from the Economic Times, NLU Delhi, in collaboration with the eGaming Federation (EGF), is actively engaging with industry stakeholders to shape the direction of future gaming regulations. Raghav Pandey, an assistant professor at NLU, confirmed these collaborative efforts, highlighting ongoing roundtable discussions aimed at gathering diverse perspectives from stakeholders to inform the formulation of robust regulations.
Recognizing the critical need for effective regulations in the gaming sector, Pandey underscored the importance of achieving a balance between industry growth and regulatory oversight. He emphasized the value of inclusive consultation processes and comprehensive research to address key regulatory challenges facing the sector.
Previously, the government had proposed the establishment of self-regulatory bodies for gaming under the IT Rules 2023. However, concerns surrounding potential industry influence over these bodies prompted MeitY to reconsider, ultimately abandoning the idea in early 2024.
India’s burgeoning online gaming industry has been advocating for regulatory clarity to distinguish permissible gaming practices from gambling activities. Companies such as Dream11, Mobile Premier League, Deltatech Gaming, Nazara, and Games24x7, grappling with issues like money laundering and high taxation, are eagerly awaiting regulatory guidelines.
Anuraag Saxena, CEO of the eGaming Federation, lauded the government’s recognition of the sector’s need for regulatory clarity. He highlighted the significant contributions of the gaming industry to India’s digital economy, citing its $3 billion market size, with 80 percent of revenue generated from real-money platforms. Saxena also referenced a report by Winzo Games, indicating India’s rapid growth as a gaming market in 2023, with 568 million gamers and over 9.5 billion gaming app downloads.
Expressing gratitude to the government for its proactive stance, Saxena emphasized that favorable regulatory policies would foster responsible industry growth, ensure consumer protection, uphold ethical standards, and effectively address societal concerns surrounding online gaming.
