Indian online gaming companies are reportedly in talks with state governments over the implementation of gaming regulations that have been put in place over the last few months by the central government. The Gaming Industry Association, along with the E-Gaming Federation, All India Gaming Federation, and Federation of Indian Fantasy Sports, have expressed concerns about the possibility of states banning certain online games, despite their compliance with central regulations.
These gaming bodies are approaching the state governments of Tamil Nadu, Odisha, Assam, and Telangana to talk about the new rules in place. A few weeks ago, Union Minister Rajeev Chandrasekhar confirmed that the government has prepared a blueprint of rules that will target the online gaming industry, particularly games involving betting or games that have an addiction factor. Last year, the government issued a statement that confirmed the appointment of multiple self-regulatory organizations (SROs) comprising industry representatives, educationists, child experts, and psychology experts who will weigh in on the new policies.
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Gaming Companies To Approach States Over Prohibition Of 'Addictive' Games
Much like Belgium, India could be placing heavy restrictions on games with gambling mechanics. The E-Gaming Federation has members like Games24x7 and Junglee Games while the All India Gaming Federation has brands like Zupee, GamesKraft, Paytm First Games, and MPL. Most of these brands have flagship products that fall in the addictive gaming category.
The gaming companies have reportedly already conveyed to the Ministry of Electronics and Information Technology (MeitY) that despite the newly-notified central rules, gambling and betting continue to be state subjects since states have the authority to prohibit these games. A MeitY official spoke to a media portal recently, stating:
“If there are some state governments that are not getting on board, the industry can flag it with the Centre, and the ministry will make the effort of raising it with the states thereafter,”
As per the central rules issued by MeitY in April, while real money gaming is currently allowed, online games that accommodate wagering on results are not. An executive at a gaming company recently stated:
“If the lack of definition of wagering on an outcome is read together with laws of the land, and if state governments determine that a particular platform allows gambling, they can still potentially be banned,”
With gambling in the regulators' sights, loot boxes and other in-game elements could be subject to scrutiny in the future.