On Thursday, the gaming industry expressed its support for the new online gaming regulations. According to them, these regulations will encourage innovation, increase investor confidence, and eliminate gambling platforms. Additionally, these regulations are expected to promote a more stable business environment and reduce regulatory fragmentation at the state level. The industry regarded these regulations as a “watershed moment,” a “game-changer,” and a “landmark.”

The All India Gaming Federation (AIGF) considers the recent move towards comprehensive regulation for online gaming as a significant first step. They believe that this will help the Indian gaming industry to compete on a global level. WinZO games also had positive remarks and expressed “truly brings the dawn of a global gaming industry right here in India”.

On Thursday, the government introduced fresh regulations for online gaming. These regulations forbid games that involve pay-to-earn. Moreover, they establish a system of several self-regulatory organizations (SROs) to evaluate whether an online game is permissible or not.

Under the regulations, the three SROs will be informed to create and share a set of guidelines on their website to protect users from possible threats. The guidelines must consist of frequent warning notifications that appear more frequently after prolonged gaming sessions, as well as the option for users to self-exclude themselves after reaching their predetermined time or money limits.

“…We are grateful to MeitY (IT Ministry) for notifying the amendments to regulate online gaming under the Indian Information Technology Act, and acknowledging the long-standing demand of the gamers and the online gaming industry,” Roland Landers, CEO, of All India Gaming Federation said.

The government acknowledged the needs of the industry and implemented thorough yet flexible regulations. This move is expected to encourage innovation, promote the “Create in India” and “Brand India” initiatives, and advance India’s technology sector, according to Roland Landers. The All India Gaming Federation believes that these regulations will not only promote consumer interest but also aid in responsible and transparent industry growth. Furthermore, they will assist in reducing the proliferation of illegal offshore pay-to-earn sites that are harmful to the nation.

“We look forward to assisting the industry transition to the self-regulatory model envisioned under the rules and use learnings from the years of work that has been undertaken at the All India Skill Games Council (AIGSC), the oldest and largest voluntary self-regulatory body for online gaming,” Roland Landers said.

According to AIGF, the government maintained “a very open and transparent approach” towards online gaming. They have actively sought feedback from various stakeholders in the industry since May 2022. AIGF also expressed their support for the government’s initiative in making online gaming a crucial part of India’s digital economy, which is expected to reach USD 1 trillion.

MPL has hailed the introduction of new online gaming regulations as a watershed moment for the industry “as it recognises online gaming intermediaries and distinguishes them from gambling”.

“The rules will go a long way in helping us realise our PM’s vision for India to become a global leader in gaming and also contribute to the continued success of Brand India and Create in India,” Sai Srinivas, CEO and Co-Founder of MPL, said.

The set of rules will establish a consistent legal structure that can enhance investor trust. “We anticipate that this will also help reduce regulatory fragmentation at the state level as also mentioned by the Hon’ble Minister, create a more stable business environment and weed out gambling platforms,” MPL’s Srinivas said.

He stated that MPL is anticipating working in partnership with industry peers and other stakeholders, as MeitY acknowledges the transition to the self-regulatory model.

“We believe that this effort will help to create a sustainable and thriving gaming ecosystem in India,” Srinivas said. Paavan Nanda, who is one of the Co-Founders of WinZO games, stated that the light-touch regulatory mechanism implemented by the central government is a game-changer for the Indian gaming market, which happens to be the largest in the world.

“The overall recognition of Online Games of Skill by way of inclusion as the third form of intermediary after Social Media, and content-related publishers/OTT players, is beneficial for GST differentiation from pay-to-earn, providing the required stability of regulation, and facilitating a level playing field for all games of skill,” Paavan Nanda said.

WinZO games have commended the Center for its robust efforts in safeguarding Indian consumers against illegal offshore pay-to-earn activities, by the relevant regulations. “The draft empowers the Government, via MEITY, to take the necessary steps to determine if an online platform is a gaming platform or a betting platform and accordingly initiate immediate action against betting platforms particularly the offshore betting platforms under section 69(a) of the IT Act,” said Paavan Nanda of WinZO games.

It’s great news for both the industry and consumers that the internet will become a safer place. The recently notified rules are a significant milestone for the gaming industry, according to Nitish Mittersain, the CEO of Nazara Technologies. These rules will provide much-needed clarity to the sector. Ranjana Adhikari, a partner at IndusLaw, believes that the regulations for online gaming are a positive step in the right direction. The central government is now in control of online gaming regulation.

Credit: Zee News