In the last few years, the Indian online gaming industry has witnessed exponential growth. Gaming, which used to be considered one of the time-pass things, has turned into a profession for hundreds of people. This rapid growth has made a significant contribution to the nation's digital economy. Therefore, the government must ensure this industry works fairly, like others.
While this rapid expansion has brought employment for a lot of youngsters, it has welcomed challenges such as addiction, financial losses, and concerns over the proliferation of illegal betting platforms. Considering these issues, the biggest queries among Indian gamers in recent times include whether the government will provide them with a national regulatory framework for gaming or not.
At the point of writing, gambling and betting activities are only restricted in India by state-specific laws, which vary from one state to another. The only thing that is prohibited in the country through a centralized law is public gambling. The Public Gambling Act, of 1867, prohibits all kinds of public gambling throughout the nation, but it has no rule for online or virtual gambling.
In this progressing online gaming era, online casinos are available that allow public gambling and don’t come under the existing law. Even lotteries are legal in India. However, overall, the current regulatory landscape is ambiguous in India regarding online gaming, and this fragmented approach has often troubled online game developers, facing unnecessary troubles that eventually hinder their growth potential.
Online gaming comes with several threats. While it may earn people lots of fame and money, it has several negative sides that should be regulated.
1. Cyberattacks: Whether it is online gaming or online work, cyberattacks are the biggest challenges to overcome. A TOI report, published in 2021, revealed that four out of five gamers have lost some money as victims of cyberattacks. The survey was done among 703 Indian gamers, and reportedly approximately 35% of them were infected by malicious programs at some point.
2. Financial Risks: The next thing that almost instantly comes to mind is the financial risks of the gamers. Online games often require money to purchase in-game items. This is not a problem for mature gamers, but vulnerable gamers probably will face massive monetary losses if they keep spending money while playing games.
3. Addiction to Online Gaming: This is one of the most prominent concerns that needs an immediate solution. A lot of games are massively addictive, which eventually makes gamers isolated from everyone and lets them neglect their responsibilities. In the long run, this addictiveness is affecting their mental health.
4. Increasing Money Laundering and Cybercrime: Offline betting is illegal, but online betting isn’t, at least at this point. Therefore, often gamers indulge in online betting, which is used as a means of money laundering. Aside from that, these online gambling sites are the home to cybercrime. Hackers often access sensitive personal and financial information through these gambling sites and cause them significant harm.
As the negative sides of online gaming are becoming more prominent, some regulatory bodies, like the All India Gaming Federation (AIGF), have been proactive in advocating for a regulated environment. The AIGF emphasizes that online gaming is the source of huge revenue generation; therefore, a well-defined regulatory framework is required to bring clarity to its work process.
Having a properly defined framework not only ensures responsible gaming practices but also abolishes illegal activities like match-fixing and money laundering. They argue that central regulation could boost revenue generation, and create employment opportunities.
Apart from these, leading industry associations, the AIGF, the E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS) have collaboratively advocated for some basic gaming ethics that include age verification, fair play, financial integrity, and data protection. These highlight the commitments to responsible gaming and desperate attempts to safeguard user interests and maintain public trust.
Despite these collaborative efforts, the path to a national regulatory framework is full of doubts and challenges. The main obstacles include the divergent state laws on gambling, different judicial interpretations, and the dynamic nature of online gaming. These are the main problems standing as a roadblock to making a uniform regulation for the nation.
Additionally, the national gaming regulatory framework can’t be provided without assertive responses from stakeholders, including players, industry operators, and policymakers. Everyone will try to safeguard their benefits. Therefore, it will be a time-consuming process.
Considering all these, the question of whether India will introduce a national gaming regulatory framework or not remains open. The ongoing scenario emphasizes having a regulatory framework to make it fair and safe for everyone, but whether it will result in something fruitful or not is still unsure.