TeaHe Central government’s proposed measures to regulate online gaming in Draft amendments to the Information Technology (Intermediary Liability and Digital Media Code of Conduct) Rules, 2021 leave many questions unanswered. Some of these proposed measures, such as the setting up of a self-regulatory body, the collection of know-your-customer (KYC) information from players, and the appointment of a grievance officer within the company, are already taking place. These are moves that have been encouraged by industry bodies representing such companies. States like Tamil Nadu want the sector to be regulated more strictly than the draft proposed by the Centre, especially for gambling with real money. The Centre’s draft is vague on the question of whether states can impose additional restrictions. So far, the industry has eluded many of the restrictions by mounting legal challenges, arguing that they offer games of skill, not one purely based on chance – a tenuous distinction to real-money gambling. . Nevertheless, games that require wagering are materially illegal under the colonial Public Gambling Act, 1867, or the states’ own gambling laws. A clear answer should come from the central government whether states have the right to ban these games online as they do offline. While the gaming industry has great potential as an economic driver of growth in India, there is a strong case for stronger regulation. Whether skill or chance, all online games affect individuals and society in the short and long term.
The government has indicated that the definition of an ‘online game’, which is limited in the draft amendment to betting platforms, may be expanded to include all sports more broadly in future. Societies around the world are grappling with the effects of video games on youth and the cycle of addiction that some gamers may be trapped in; For example, China limits the number of hours young gamers are allowed to play daily, after which they are locked up for the day. Caution and restraint must be exercised when considering similar moves in India, lest the government introduce uncertainty for both small domestic game developers and large international studios with an Indian audience. The government has said the aim is to facilitate industry and not hinder its development. It has also indicated that in the future, it will attempt to prevent “violent, addictive or sexual content” in video games. There should be extensive public consultation to ensure that economic rights, individual liberties and social imperatives remain in balance.