GoM Likely To Hold First E-Gaming Regulation Meet On Dec 15

SUMMARY

Though the GoM has held a host of informal meetings so far, but the upcoming first official meeting is anticipated to establish a framework for regulating the e-gaming industry

The meeting will mainly focus on devising effective taxation methods for the sector and curbing any illegal gambling or betting, especially from offshore players

Earlier, in a wave of GoM meetings, money laundering issues by certain gaming companies have been brought up for discussion

The group of ministers (GoM), set up to discuss issues related to regulation of online gaming, is likely to hold its first meeting on December 15.

Though the GoM has held a host of informal meetings so far, but the upcoming first official meeting is anticipated to establish a framework for regulating the e-gaming industry. The meeting will mainly focus on devising effective taxation methods for the sector and curbing any illegal gambling or betting, especially from offshore players, ET reported.

Some government officials expressed concerns about the gaming rules introduced by the Ministry of Electronics and Information Technology (MeitY), stating that they lacked sufficient legal authority for enforcement, particularly in instances where gaming companies operate from locations outside India.

Earlier it was reported that the Indian government was considering the establishment of a GoM to develop and oversee a comprehensive regulatory framework for the online gaming industry.

The proposed GoM was expected to comprise prominent members of the government, including Home Minister Amit Shah, Finance Minister Nirmala Sitharaman, IT Minister Ashwini Vaishnaw and Information and Broadcasting Minister Anurag Thakur.

Earlier, in a wave of GoM meetings, money laundering issues by certain gaming companies have been brought up for discussion

Furthermore, the illegalities exposed in the Mahadev betting app are not likely to be an isolated incident. Some participating ministries in the GoM have highlighted this issue, advocating for it to be a key focus in shaping future gaming rules and their enforceability, the report said citing an official.

Earlier in April, the Ministry of Electronics and Information Technology notified the rules for online gaming. Under the online gaming rules, all e-games would be determined as permissible or not by SRBs. The industry can have one or multiple SRBs, as per the rules. Gaming companies would have to be registered under one of the SRBs to offer services in India.

In July, Inc42 reported that four industry bodies of the online gaming sector filed three different applications for the formation of SRBs, and MeitY would take at least three months to finalise the SRBs.

Various stakeholders in the online gaming industry, including organisations like the All India Gaming Federation (AIGF), Esports Players Welfare Association (EPWA), All India Gaming Regulator (AIGR) Foundation, and a consortium of the E-Gaming Federation (EGF) and the Federation of Indian Fantasy Sports (FIFS), have submitted draft proposals for the establishment of a self-regulatory organisation (SRO).