The government will establish three self-regulatory organisations (SROs) to licence games that correspond to the country’s operating requirements, according to Rajeev Chandrasekhar, Minister of State for Electronics and Information Technology.

The Indian government enacted regulations to regulate the online pay-to-earn industry, prohibiting pay-to-win games involving actual money. Rajeev Chandrasekhar, Minister of State for Electronics and Information Technology, said that the government would establish three self-regulatory organisations (SROs) to licence games that adhere to country legislation.

According to Chandrasekhar, suitable internet games do not feature pay-to-win or anything that causes user injury in youngsters. In India, SROs will regulate internet gaming rather than the government.

As per the laws, the SROs must include an educator, an expert in psychology or mental health, and someone who has worked as an officer or member of an organisation dedicated to preserving children’s rights. “This is an enabling framework to allow serious and significant expansion in the online gaming space in India, which is a very big opportunity,” Chandrasekhar explained.

The IT Rules of 2021 were amended to include the online gaming rules. The online gaming self-regulatory body can deem an online pay-to-play game as permissible, as long as “the online pay-to-play game does not involve pay-to-earn on any outcome.”

Any SRO that enables online games that entail pay-to-win on the outcome of cricket matches, such as the Indian Premier League, will break the guidelines and be denotified, according to Chandrasekhar. In addition, SROs must establish a framework on their website to safeguard users against pay-to-earn addiction, financial loss, and fraud.

“This is the best possible framework and the way ahead for online gaming firms in India. With the newly established clarity, the sector will regain positive investor interest furthering its growth and parallelly driving new career and economic opportunities,” Deepak Gullapalli, Founder & CEO, Head Digital Works (A23) said.

Several Indian states have banned online fantasy game platforms, claiming suicide and addiction issues among their populations. Chandrasekhar claimed that any state legitimately attempting to combat pay-to-earn or pay-to-earn would find the rules non-ultra vires to their efforts.

“The new guidelines will promote innovation, boost Create in India and Brand India, and give the much-needed impetus to India’s Techade. It will ensure the responsible and transparent growth of the industry, safeguarding consumer interests while curbing the proliferation of illegal offshore pay-to-earn sites,” Dr Subi Chaturvedi, Global SVP, Chief Corporate Affairs and Public Policy officer of InMobi Group said.

Credit: Business Today