Centre Plans Federal Oversight Of All Real-Money Online Games: Report


After the Prime Minister’s Office (PMO) rejected a proposal to regulate only skill games and exclude games of chance, the center planned to apply the regulation of online games to all real money games. on monday.

The long-awaited regulation will shape the future of India’s gaming sector, which will be worth $7 billion by 2026 and will be dominated by real money games, according to research firm Redseeer. Tiger Global and Sequoia Capital recently backed popular Indian startups Dream11 and Mobile Premier League in fantasy cricket.

A government commission charged with drafting the regulations in August proposed a new body to decide whether games involve skill or chance, and would then introduce registration requirements, a code of knowing your customers, and a grievance mechanism.

Games of chance, believed to be similar to gambling, which is largely banned across India, were set to remain under the jurisdiction of individual state governments, which can be freely regulated, Reuters previously reported. However, at a meeting on Oct. 26, PMO officials opposed such discrimination and called for increased oversight of games of all kinds, according to confidential minutes of the meeting seen by Reuters.

According to the minutes, distinguishing gaming as a skill or opportunity is not easy due to lack of legal clarity and contrasting court rulings, stating that “online gaming is a single activity/service with no distinction. It could be considered as,” he said.

In India, the definition of a game is controversial. While the Supreme Court has said that the card game rummy and certain fantasy games are skill-based and legal, state courts have taken different views on games such as poker.

The PMO and IT Ministry, which are drafting the regulations, did not respond to requests for comment. Three people directly involved in the rulemaking process, including two government officials, told Reuters the rule would give the federal government broader oversight of all types of gaming, while also allowing state governments to oversee gambling and gambling. He said he would remain empowered to ban games of chance outright.

The drafting of the new regulation comes amid growing concerns that such games have surged, especially among young people, leading to addiction and financial loss, with some reported cases of suicide.

One of the sources said the Modi government remains concerned about the potential addiction of such platforms.

The government panel’s August report recommended that the new rules include so-called “de-addiction measures,” such as regular warnings and advisories, and fixed deposit and withdrawal limits.