Everything about the Online Skill Based Gaming Laws in India

Top government authorities demanded the establishment of a regulatory organisation to oversee and categorise the online skill based gaming/gambling industry.

According to a recent government assessment, India needs a regulatory body to oversee and categorise online gambling websites.

The study, which was created by a committee of senior officials under Prime Minister Narendra Modi, advocated for involvement and tougher categorization of India’s online gaming industry.

Indian skill based gaming start-ups and industry groups had previously looked for a way to control gaming environments and categorise online games according to skill or chance, aiding the industry’s ability to distinguish between games and gambling.

On June 7, a meeting with Rajeev Chandrasekhar, Minister of State for Electronics and Information Technology, took place. During the two-hour meeting, founders from several of India’s top mobile gaming platforms, including Nazara Technologies, Mobile Premier League (MPL), and Dream Sports, participated.

What are the new laws declared for online skill based gaming sector in India?

The new declaration follows up on this discussion and calls for comprehensive regulation and classification. It also suggests that the industry be regulated through rules protected under India’s existing IT law as an “Interim measure.”

The proposed law would specify the criteria for determining whether a game is one of skill or chance and will establish new gaming forms. Esports, online fantasy sports, card games, and other casual activities will all be covered under this framework. Indian businesses and those that cater to Indian clients must abide by these regulations.

A “Code of Ethics” for game publishers is also being suggested, which calls for a strong grievance procedure and adherence to India’s KYC requirements. Any gaming platform that provides real-money games to Indian clients will now be required to be a legitimate Indian legal organization in accordance with the new rules.

The bill would also provide the government with the ability to prohibit unauthorized platforms. Additionally, a three-tiered conflict resolution mechanism and the establishment of an oversight committee within the proper government ministry are required.

According to a 2020 report by the Indian trade group FICCI and consulting firm EY, transaction-based gaming, including real money, contributed 71%, or $46 billion, of the $65 billion ($817 million) attained by the online gaming industry the prior year.

Top Indian cricketers’ endorsements and other marketing efforts have increased the appeal and investor interest in real money gaming apps, according to Pitchbook data, by 2021, India would have 95 million paying gamers.

How is gaming addiction addressed by the new laws?

According to the government assessment, the spread of such games among the youth has led to an addiction that frequently resulted in financial losses, and age verification in such circumstances may be imposed to prevent further harm caused by online gaming going into 2023.

The value of India’s whole gaming sector was predicted to be Rs 13,600 crore in 2021 and to rise to Rs 29,000 crore by 2025. eKYC will be mandatory going forward for anyone signing up on the online skill-based gaming platform.

How can IDcentral help comply with the new gaming laws?

IDcentral provides the most comprehensive KYC verification solution for the gaming-gambling sector. The eKYC verification includes online document verification, ID verification like Aadhaar and Pan card, real-time biometric face authentication and AML compliance screening to provide a complete package for digital identity proofing.

As more and more players pour into the online gaming industry, the importance of regulatory compliance will be crucial in scaling the player base and minimizing efforts to reduce fraud. Age Verification included in the IDcentral Verification portal will help verify and protect underaged users from accessing the game.

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