India’s online gaming industry booming, but lack of regulation poses challenges
Financial ruin and addiction are real-time concerns of all stakeholders
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India’s ever booming gaming industry needs proper regulation to be in place, feels stakeholders.
Talking to Bizz Buzz, Hema Bansal Ahlawat, Co-Founder, HJA & Associates LLP, said: “The internet gaming market in India has grown rapidly, particularly during the pandemic. The absence of a thorough legal structure, however, presents difficulties for this rapidly expanding industry. A complex and hazy regulatory environment has been produced by out-of-date gaming regulations and the quick speed of technological improvements.”
There is a need for laws to be clear and consistent as more gamers, developers, and investors enter the gaming business. Regulatory frameworks that are inconsistent and lack clear standards, sadly, add to the uncertainty that gaming enterprises in India must deal with.
India’s gaming market is growing with billions of downloads having value of billions of dollars. To address the complexities, the introduction of new regulations represents a much-needed step towards streamlining the legal framework for online gaming. These rules aim to standardise regulations, establish a self-regulatory framework, and provide mechanisms for addressing grievances, she said.
Henceforth, it hereby becomes crucial for the government to work in tandem with industry experts, stakeholders, and legal authorities to develop a comprehensive regulatory framework that addresses the unique challenges faced by the gaming sector. This framework should establish clear guidelines, standards, and mechanisms for dispute resolution, while also considering the dynamic nature of technological advancements and evolving market trends.
The introduction of robust regulations will not only bring clarity to the legal framework but also create a level playing field for all stakeholders. It will empower self-regulatory bodies to play a crucial role in overseeing industry practices, setting ethical standards, and addressing grievances. With the government’s support, these bodies can establish fair and unbiased decision-making processes, safeguarding the interests of all parties involved.
According to her, ‘By embracing this opportunity for regulatory reform, India can unlock the full potential of its gaming market, attracting investments, nurturing local talent, and positioning itself as a global gaming hub.”
The new regulations in the gaming industry will be a crucial step that will help the industry to grow as a whole and its transition towards the self-regulatory model will help genuine games of skill come up in the industry. These regulations will also ensure the safety of consumers which in turn will bring more talented players in the industry.
Shreya Sharma, Founder, Rest The Case, said: “These new rules will centralize the mechanism and facilitate a level playing field for all games of skill. It will protect consumers from all sorts of illegal offshore betting and gambling. Gaming is a rising industry in India and with a proper regulatory setup, it will help the gaming companies and industries to grow efficiently and start competing internationally as well.”
“I compliment the introduction of the Gaming Amendments by the Indian government. This new legal regime for operators of online games is a significant milestone in the gaming industry. It establishes a regulatory baseline that brings much-needed certainty to a sector that has faced disruptions and challenges for a long time,” Anand Bhushan, CEO, Easy recruit plus and Educrack, said.
With the newly created clarity, the industry will regain favourable investment interest, accelerating its expansion and concurrently generating new employment and economic prospects.
Abhishek Malhotra (Managing Partner TMT Law Practice), adds, “The Central government has engaged in constructive discussions with operators, and recognize its socioeconomic potential, as well as the ramifications of overindulgence by users, illegal and offshore platforms.”
Financial ruin and addiction are real-time concerns of all stakeholders, and the State governments have been swift with enforcement actions to curb advertising across medium. Gaming companies and industry bodies have been quick to litigate pan India which restrict skill based gaming and have faced stern resistance from the Telangana, Andhra Pradesh and Tamil Nadu governments.
