India has proposed a body for the online gaming industry to regulate itself as there have been rising concerns over the habit-forming nature of games and patchy state regulations that disrupt business, in draft amendments to its information technology rules published on Monday.

The proposal comes after a government panel proposed new rules to manage a sector that is expected to reach $7 billion by 2026, as indicated by consultancy Redseer.

Tiger Global and Sequoia Capital, two American investment firms, have recently supported Indian startups Mobile Premier League, known for its fantasy cricket.

The proposal for oversight of the industry comes amid growing fears that the proliferation of such games among youngsters, has led to habit formation and monetary losses.

Gaming organizations would require government approval to enlist a self-regulatory body, which would incorporate a member designated by the government—with a background in public policy, public administration, law enforcement, or public finance—and a member from the field of psychology, medicine, or consumer education.

“We believe this is a great first step for comprehensive regulation of online gaming and will hopefully reduce the state-wise regulatory fragmentation that was a big challenge for the industry,” Roland Landers, the CEO of the All India Gaming Federation, said.

The draft amendments likewise suggest that organizations appoint a chief compliance officer to guarantee conformity with the law and verify user identity before an online account is made for them to play the games.

Credit: Reuters