Industry Body Seeks More Clarity On Online Gaming Bill

Industry body UK India Business Council (UKIBC) has pitched for more clarity regarding definitions and the regulatory framework mentioned in the recently unveiled draft online gaming rules.

In its submissions before the Ministry of Electronics and Information Technology (MeitY), the body has called for legalising and regulating the online gaming market, including sports betting, across the country.

“In our submission, UKIBC proposed a number of key recommendations including the need for clarity in definitions and wider governance related provisions of the draft Rules, which center on enabling certainty and ease of doing business,” said UKIBC in a statement.

The council added that the Union government should be the nodal body for formulating rules governing the space, and the state governments should reserve the right to permit whether online gaming should be allowed or not. 

The industry body also sought ‘clear and effective regulations’ and called for incorporating international best practices in the Online Gaming Bill. It also backed the need for drafting game-neutral regulations, which would apply to a gamut of online games and sporting events.

“Legislations seeking to ban ‘online games of skill’ have been held as unconstitutional by the Indian Courts reaffirming they are a business activity. Any upcoming regulations for the sector should therefore, move away from prohibition towards constructive governance,” added one of the suggestions made by the industry body. 

The business council added that it aims to work with the Union government and all stakeholders to shape a ‘responsive’ regulatory framework for online gaming in the country. 

This comes days after the Law Commission directed MeitY to put the draft online gaming rules on hold until it comes out with a ‘comprehensive’ report on the matter. The ministry expects the rules to be notified by January 31.

At the centre of the debate are the recent draft online gaming rules published earlier this month that promise a slew of changes and regulations for the online gaming industry. The draft norms put the onus of due diligence on online gaming intermediaries. The Bill also proposes a self-regulatory mechanism for online gaming companies.

The development comes close on the heels of Centre appointing MeitY as the nodal ministry to oversee the online gaming industry. Earlier this month, the ministry also held discussions with other stakeholders, including parents, students, and educationists, on how to regulate the burgeoning space.

While industry bodies have raised alarm over the self-regulatory bodies, the ministry has responded by saying that the SROs have to be steered away from the dominance of major players. 

The need for regulation has come at a time when the space is witnessing rapid adoption and emergence of new unicorns in the online gaming industry. The recent spurt in the adoption of online games has minted unicorns such as Dream11, MPL, and Games24X7. 

As per a report, the number of online gamers in the country grew 12% to 507 Mn by March 2022 from 450 Mn in March 2021.