Fact Box: India Panel Recommendations for the Booming Online Gaming Industry

The words ‘Online Gaming Regulations of India’ are displayed in front of an Indian flag in this illustration taken on September 14, 2022. REUTERS/Dado Ruvic/Illustration

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NEW DELHI, Sept 15 (Reuters) – India should create a regulatory body to classify online gaming based on skill or chance, introduce rules to block banned formats and take a tougher stance on online gambling, a government official said. government panel in a report seen by Reuters. read more

The long-awaited report is seen as shaping the future of India’s mobile gaming industry, which is estimated to reach $5 billion by 2025, up from $1.5 billion today.

Here are some of the highlights of the regulatory framework recommendation proposed by the panel in its preliminary report:

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* The federal government should consider enacting a separate law to regulate online gaming as a “long-term measure.” As a “stopgap measure”, until such a new law is enacted, the industry can be regulated through rules drafted under India’s existing IT law.

* India’s IT ministry would act as the central ministry for online gaming, except for esports and gambling.

* Any new legal framework should apply to both real money and free-to-play games of skill, including esports, online fantasy sports, card games and other casual games that could have a significant impact. The rules would apply to both gaming companies in India and those operating outside but targeting Indian users.

* Creation of a regulatory body for the online gaming industry, which among other things will determine what qualifies as a skill game and will certify the different game formats.

* Inclusion of provisions for a “Code of Ethics” for game publishers; have due diligence of online gaming platforms, including a robust complaint redress mechanism and mandatory know-your-customer standards.

* Any online gaming platform offering real money online gaming to Indian users must have an incorporated legal entity under Indian law. Provide blocking powers for the government to deal with unregistered online gaming platforms.

* Have a three-tier dispute resolution mechanism, consisting of a gaming platform, gaming platform self-regulatory organizations, and an oversight committee led by an appropriate ministry.

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Reporting by Aditya Kalra in New Delhi. Edited by Gerry Doyle

Our standards: the Thomson Reuters Trust Principles.

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