Indian gaming industry has been in the eye of a storm in terms of regulatory change over the last couple of months, having seen a number of developments that have been the subject of discussion and key considerations by stakeholders from all corners of the sector. Developments are occurring against the backdrop of skyrocketing growth in India’s gaming market, which is powered by huge Internet penetration, smartphone adoption, and a huge youth demographic looking for new digital entertainment options.
It’s a huge population and a youth that’s very tech-savvy— these make India an important playground for domestic and international companies dipping their toes into gaming. A craze for mobile gaming has picked up considerably, although it is thanks to the availability of affordable smartphones and countrywide access to high-speed internet connectivity. Games ranging from casual puzzles to immersive multiplayer experiences have found a large and enthusiastic audience among Indian gamers.
While the growth continues, regulatory oversight has been outpacing it at par, as authorities work towards controlling concerns around game addiction, consumer protection, and ethical issues mired with in-game purchases. The Indian government has not been any different in terms of looking at these and how the regulatory framework might ensure industry growth does not come at the cost of social responsibility.
Perhaps among the most important recent regulatory developments was the one introducing the draft National Policy for Online Gaming in 2021. Through the said policy, it is sought to have an omnibus framework that would regulate a host of issues related to online gaming, starting from licensing to consumer protection and responsible gaming guidelines, with mechanisms for dispute redressal. Stakeholders from across the gaming ecosystem, from industry players and experts to consumer advocacy groups, will be invited to provide feedback on and help shape the final policy.
The Draft National Policy on Online Gaming desires to stipulate differential treatment between skill-based games and games of chance, although regulating them jointly. Thus, skill-based games, where a player has to demonstrate knowledge, strategy, or physical skill, will be lightly regulated compared with a game of chance, involving an element of luck or random outcome.
Furthermore, it has been touting the need for protection of minors and vulnerable groups against exposure to potential harm from excessive gaming. For that matter, it has proposed age verification mechanisms, parental controls, and limits on in-game spending to protect younger users and ensure responsible gaming practices.
The Courts and states, too, have contributed to India’s gaming regulatory landscape. Courts have clarified a heap of legal issues with respect to appropriateness in classifying online gaming and the validity of contracts relating to gaming. Running parallel, some state governments have attempted to either regulate or prohibit online gaming within their jurisdictions, citing reasons such as addiction, effects on society, and that the games must be fair and the consumers protected.
These developments have focused the efforts of industry participants toward compliance, transparency, and responsible gaming in recent times. Some big gaming companies have set up age verification checks, spending limits for players, and educated people on the responsible use of their games.
The Indian gaming industry has further seen the coming together of industry players, regulatory agencies, and academic institutions in promoting research, policy dialogues, and initiatives geared toward having a settings-sensitive, sustainable, and ethical gaming environment. All these efforts ring with joint concern for striking a fine balance between innovation and growth with social responsibility and consumer protection.
Looking ahead, stakeholders need to be ready to move the future of regulatory developments within the Indian gaming industry as participants navigate through the challenges and opportunities of this fast-changing and fast-expanding market. The finalization of the National Policy for Online Gaming, combined with stakeholder consultations and sustained dialogue between the regulators and industry players, will go on to define the future of gaming in India.
With the maturation of India’s gaming ecosystem, stakeholders are optimistic that the industry is going to maintain the growth, innovation, and investment trajectory. Regulatory clarity on customer protection and responsible gaming will help build trust among users and foster sustainable growth that could have meaningful contributions toward the digital economy of India.
Stakeholders should join, track news from regulatory authorities, industry associations, and relevant news sources to identify the latest developments in regulations and trends in the Indian gaming industry.
