In its confidential draft report dated August 31, 2022, a government panel has called for a new regulatory body under the Ministry of Electronics and Information Technology (MeitY) to determine which online games qualify as games of skill, and then seek compliance and enforcement. According to the report, India needs a new federal online gaming law, which will provide regulatory flexibility with punishment provisions, along with blocking powers, for the government against prohibited gaming formats.
Though the panel considered only online skill games, and not gambling, which is handled by states, it noted that many offshore betting and gambling websites that are illegal in India have become popular among Indian users. The new legal framework would apply to both free and pay-to-play skill games.
The report stated that on the aspect of prohibiting games of chance (gambling websites or apps) from being played online, the proposed Digital India Act can include it in the list of prohibited user harms that will not be permitted. The report further noted that state governments already find it difficult to implement and monitor geo-fencing measures to ensure that no user in their region is accessing illegal forms of gambling or gaming.
The panel has been drafting regulations for the country’s online gaming sector for months. The report is expected to shape the future of the mobile gaming industry in India. It comes amid rising concerns over games causing addiction and inconsistent state laws disrupting business.
MeitY will finalise the report after receiving further comments from panel members. It will then be sent to the cabinet secretariat for approval, though there is no timeline for finalisation.
