Govt Panel Recommends Creation Of A Regulatory Body For Online Gaming: Report

Govt Panel Recommends Creation Of A Regulatory Body For Online Gaming: Report

SUMMARY

A government panel has recommended creating a regulatory body to classify online games as based on skill or chance

The panel has reportedly also called for introduction of rules to block prohibited formats and take a stricter stance on gambling websites

It also highlighted the need for India to have a federal online gaming law in its report

The endless debate on the online gaming industry in the country may finally come to an end as a government panel has reportedly recommended creating a regulatory body to classify online games as based on skill or chance.

The panel has also called for introduction of rules to block prohibited formats and take a stricter stance on gambling websites in its report, news agency Reuters reported. 

The panel of Prime Minister Narendra Modi’s top officials has been working on drafting regulations for months now, it said.

In the draft report dated August 31, the panel has called for creation of the new regulatory body under the aegis of the IT Ministry. The body will determine which online games qualify as games of skill,  and “seek compliances and enforcement”, the agency reported. 

The report has also highlighted the need for India to have a federal online gaming law which will provide regulatory flexibility with punishment provisions, along with blocking powers, for the government against prohibited gaming formats, it added.

In the case of online games of chance, the proposed Digital India Act can include it in the list of prohibited user harms that will not be permitted, the report said.

The report will be sent to the Cabinet for approval after the IT Ministry finalises it based on further comments from panel members. However, no timeline for the finalisation of the report has been set.

Earlier this year, the government set up an inter-ministerial committee to come out with a framework for the gaming industry in the country, work on regulations, and identify a nodal ministry to look after the sector.

Under the List-II of the Seventh Schedule of the Constitution of India, states have the power to legislate ‘sports’ and ‘betting and gambling’. Several states such as Telangana, Andhra Pradesh, Tamil Nadu, Karnataka, Kerala have issued several notifications to ban online gaming over the last few years, creating confusion for gaming startups in the country. Many of these notifications were later struck down by the respective High Courts of these states.

A unified law is expected to bring more clarity into the sector. Many gaming executives earlier told Inc42 that a centralised guideline for the industry is the need of the hour. 

Dream11 became the first startup from the online gaming sector to turn unicorn in 2019. MPL and Games 24×7 from the industry also joined the coveted club in 2021 and 2022, respectively.

On the other hand, gaming company Nazara Technologies made its debut on the stock exchanges last year.

According to a FICCI-EY report, the number of online gamers in the country reached 390 Mn in 2021 and the sector generated a revenue of nearly $1.3 Bn during the year.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Govt Panel Recommends Creation Of A Regulatory Body For Online Gaming: Report-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Govt Panel Recommends Creation Of A Regulatory Body For Online Gaming: Report-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Govt Panel Recommends Creation Of A Regulatory Body For Online Gaming: Report-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Govt Panel Recommends Creation Of A Regulatory Body For Online Gaming: Report-Inc42 Media
Govt Panel Recommends Creation Of A Regulatory Body For Online Gaming: Report-Inc42 Media
You’re in Good company