December 2020 saw government think-tank Niti Aayog release a draft discussion paper asking for comments on guiding principles of Online Fantasy Gaming Platforms (OFGPs).

The motive of the draft discussion paper was to usher in regulatory clarity to the online fantasy sports segment which has the potential to generate significant business in the upcoming years. The draft had proposed instituting a self-regulatory governing body for industry players with an independent oversight board & customer redressal mechanism.

The Niti Aayog paper spoke about devising a distinct category of online fantasy sports which will stand out from other skill games in addition to betting & gambling. It moreover called for a solitary self-regulatory organisation for the fantasy sports industry which will be governed by an independent oversight board. “These guiding principles may be treated as a uniform ‘regulatory sandbox’ and recalibrated based on innovations and developments in the sector,” it said. Arun Prabhu, Partner, TMT (technology, media & telecom), Cyril Amarchand Mangaldas, said the guidelines will usher in the much-required predictability in regulatory positions. “This will stop fly-by night operators from muddying the waters with non-compliant formats,” he said. Co-founder & CEO of Mobile Premier League Sai Srinivas said a joint representation on the draft has been sent to Niti Aayog by major industry players like Paytm First Games, My11Circle, Junglee Games & Winzo. “One major issue is the ambiguity, which comes with most sunrise sectors. As esports and fantasy grow, we can expect regulations to start solidifying. Niti Aayog has taken the first steps and we welcome them,” he said.

The Gaps

According to experts, the Niti Aayog’s draft looked to be inadequate in addressing the complexity of the ‘real-money’ element. While it briefly spoke regarding the ‘pay-to-play variant’ of fantasy sports receiving prior approval in instances where winning is predominantly dependent on skills, the question regarding how much money is excessive is debatable.

Gaming federations like The Online Rummy Federation & the All India Gaming Federation have shared with Niti Aayog their concern regarding non-inclusion of the whole online skill gaming ecosystem & just restricting itself to fantasy sports.

Co-Founder & CEO of Rummy Circle Mr. Bhavin Pandya said, “The draft seems not just incomplete and short-sighted, even the consultation process of Niti Aayog was far from inclusive. While fantasy sports is less than 1/3rd of the entire skill gaming industry, there is this perception that playing some of the games for money is leading to problems in the society and perceptively fantasy sports wants to steer clear from this even as games of skills,” bringing forth the entire emphasis on the uniqueness of the fantasy sports segment.

Source- Gaming360