The online skill gaming sector in India is growing rapidly with each passing day. The Covid-19 nationwide lockdown in 2020 came as a massive boost for the sector, significantly accelerating its growth.

Despite this favourable growth pattern, the sector is being substantially held back by the lack of a regulatory mechanism. Many states across India have imposed a blanket ban on these games.

This has resulted in esports, fantasy sports and skill gaming platforms asking for clear-cut distinction & systemic regulation of the sector. Lack of regulation has resulted in missed opportunities with regards to taxes, business development and people missing out on playing these skill games.

Despite all this, neither the central government nor the state governments have introduced any laws & regulations that can exactly define the legality of these games.

Online gaming industry associations pushing for regulation

Online gaming industry associations such as the AIGF (All India Gaming Federation), FIFS (Federation of Indian Fantasy Sports) & Esports League companies regularly affirm the fundamental definition of games of skill as being legal.

The current regulatory situation is a loss-making situation for everyone, with industry experts feeling a sense of surprise as to how central & state governments aren’t interested in the potential regulated tax income & licence revenues and are basically playing havoc with the growth perspectives of companies.

The current tentative state regulations have resulted in states acting at will with regards to legalizing or banning the skill games. Regulating the industry will be a win-win situation for everyone, with it also facilitating responsible gaming practices among platforms and users.