While the proposal of the self-regulatory organization (SRO) has taken centre stage in drafting online gaming rules, the government might consent to have multiple SROs.

Though the government is probably going to set up stringent rules and regulations for the legal responsibilities of SROs, The rules will incorporate dos and don’ts for the SROs as well as other norms for who can shape an SRO.

As per government officials quoted in the report, the government will not allow any unreliable body to form SROs. Hence, they will put appropriate mechanisms in place for who can form an SRO, their roles and responsibilities, and what legal backing they have for certifying games. SROs will be expected to have credibility and accountability to both the government and the public.

If there are various SROs, industry bodies have highlighted the need to guarantee that if a game is denied a certificate by one SRO, no other SRO would do so, thereby having a common code of conduct across the industry.

“That certainly is one possibility.” “We do not want forum shopping of certification by gaming companies because there are many smaller and bigger players in the market,” a source said, as quoted in the report.

By the end of January, the final rules are expected to be announced.

As of late, Minister of State (MoS) for Electronics and Information Technology (MeitY) Rajeev Chandrasekhar said that the self-regulatory organizations proposed under the draught rules have to be steered away from the dominance of major players.

The MoS held a meeting with top executives and founders of gaming organizations on the recently-published draught rules for the industry, as the government has begun extensive consultation on the draft.

In December 2022, the Center appointed MeitY as the nodal ministry to manage the online gaming industry. Recently, MeitY published the draught of online gaming rules as draught amendments to the IT Rules, 2021, under which it proposed a self-regulatory mechanism for the industry.

“Self-regulatory bodies will be registered with the ministry and will be able to register online games of its members who meet certain criteria. “Such bodies will also resolve complaints through a grievance redressal mechanism,” the ministry said.

Because of regulatory instability and a funding freeze brought about by an economic downturn, online gaming startups saw a sharp 80% year-on-year decrease in subsidizing in 2022. Indian gaming startups raised just $349 million last year, compared to $1.74 billion in 2021, according to Inc42 information.

The Indian gaming startup ecosystem has delivered unicorns like MPL and Games24X7. In the meantime, the number of gamers in the nation increased 12% to 507 million by March 2022 (24% were paying users) from 450 million in March 2021, as per a report by gaming and interactive media-focused VC fund Lumikai.

Credit: Inc42