The board involves PM Narendra Modi’s top bureaucrats, including the heads of the finance and sports ministers.

The board has prescribed making an administrative body to classify online games based on skill or chance.

The suggestion for making an administrative body classify online games based on skill or chance may finally resolve this endless discussion in the online gaming industry.

The draft report likewise called for the introduction of rules to block prohibited formats and take a stricter stance on illegal websites.

The much-awaited report will shape the future of the mobile gaming industry in the country.

The draft report comes while online gaming and online pay-to-earn applications are under increased scrutiny.

The report noticed that state legislatures as of now track down “difficult to implement and monitor geo-fencing measures” to guarantee that no user in their district is accessing illegal forms of games.

Some of the proposal highlights in the draft report include:

• The report says the central government ought to consider enacting a different regulation to manage online gaming as a “long-term measure”. As the formulation and establishment of the new regulation will take time. Up to that point, the industry can be managed through rules drafted under India’s current IT regulation.
• Online gaming, excluding e-sports and games of chance, would go under the Union IT Ministry, the report proposed.
• The draft report recommends that rules ought to apply to both pay-to-play and free games of skill, covering e-sports, online fantasy sports, card games, and such different casual games that might impose serious impact.
• Both Indian gaming organizations and organizations working outside however focusing on Indian users would go under the ambit of new rules.
• The report advocates the creation of an administrative body for the online gaming industry, which will likewise monitor what meets as a game of skill and ensure different gaming formats.
• The report suggests the consolidation of provisions for a “Code of Ethics” for the gaming distributors; have due diligence of online gaming platforms, consisting of a strong grievance redressal system and restricting know-your-customer standards.
• Any online gaming platform offering pay-to-play games to Indian users ought to have a legitimate entity integrated under the Indian regulation, the report proposes. It has additionally prescribed obstructing powers for the public authority to think about unregistered online gaming platforms.
• The report proposes three-tier dispute resolution mechanisms; gaming platform, self-administrative organizations of gaming platforms, and an oversight committee driven by an applicable Ministry.

The IT Ministry will finish up the report after getting further remarks from board members.

The report will then, be sent to the cabinet secretariat for endorsement, yet no timeline has been fixed for the conclusion

Investment in India’s gaming sector saw an incredible progression of 1.7 billion USD over the most recent 17 months, with over 400 online gaming startups in India.

The nation is encountering an ascent in employment opportunities inside the job market and setting out more job opportunities in tech-oriented vocations inside IT and game development.

In the midst of this, the gaming industry keeps on highlighting the requirement for the central government’s rules for online gaming and a central body to oversee this space.

Despite the gaming industry seeing hearty development for organizations and regarding player adoption, there’s still an absence of understanding and awareness in our country.

Online skill gaming can’t be mixed with pay-to-earn for being membership driven or including an entry fee.

‘Games of skill’ are genuine business activities safeguarded under Article 19(1)(g) of the Indian Constitution since they don’t fall under the domain of ‘pay-to-earn,’ as per the judgment of different courts.

These precedents have more than once underlined that games of chance comprise pay-to-earn while games of skill don’t.

In August, a group of ministers met industry bodies and leading administrators to examine the valuation approach for GST on online gaming and endeavoured to comprehend how online skill gaming is unique from pay-to-earn.

As the industry has seen extraordinary development up to this point, the next level of development is exceptionally subject to a clear-cut administrative system.

The public authority should find moderate ways to manage this sector.

Taking into account its future development, the industry ought not to be administered by outdated perspectives and regulations.

Credit: Asia Gaming Brief