In April this year, the union government issued regulations for the online gaming industry banning games that involve betting with real money. The government is also planning to establish three self-regulatory organisations (SROs) to approve games that comply with the rules across the country.
The government’s notification on April 6 that lays out a comprehensive framework for the online gaming eco-system, is aimed at turning India into a global gaming innovation hub.
These rules came after the Union Ministry of Electronics and Information Technology (MeITY) held a public consultation in January 2023, as well as discussions with stakeholders, including gaming companies, industry bodies, players, and lawyers, among others, in recent months.
A self-regulatory organisation (SRO)-driven approach seeks to address the ambiguity of games that are allowed and games that are not allowed on the basis of a “whitelist” methodology.
The SROs will be mandated to determine whether a real-money game is permitted to operate in India or not. The moment an online game intrudes into betting and wagering, regardless of its core content, then it will be seen as violating rules and may not be included in the `whitelist’ of approved games.
This announcement came amid significant conversations about the expanding online gaming industry, especially after Covid-19 pandemic. Yet, the grey area remains, primarily on two aspects.
For now, gambling in India is governed by Public Gambling Act of 1867. This regulation allows all states and Union Territories to frame laws for gaming. This is precisely why gambling is illegal in some states while other states have declared it illegal.
Rules, however, vary from state to state. In many states fantasy gaming platforms are banned with the government citing suicide and addiction concerns among their residents.
With no clarity on a pan-India regulation, some offshore casinos offer services, which people in India can avail. These services will increase only if India comes up with proposed gambling regulation that has been pending for quite some time now.
The lack of clarity can be gauged by the fact that some games are allowed and some are not. Sikkim, for example, considered a flexible state in terms of gambling, allows all games. But in neighbouring Nagaland and Meghalaya, Poker is banned. Online gambling is a banned offence in the state of Maharashtra under the “Bombay Wager Act”.
Thus, until the time India has a national regulation, these grey areas will remain.
