Listen to this story The online gaming industry is one of the fastest-growing industries in India; however, there was no regulatory oversight until now.
Recently, the Ministry of Electronics and Information Technology (MeitY) was appointed as the nodal ministry for the industry, which is a welcoming move.
Further, esports will now be a part of the ‘multisports event’ category under the Ministry of Youth Affairs and Sports (MYAS).
Taking to Twitter, IT minister Rajeev Chandrasekhar said that MeitY would soon publish Rules for online gaming intermediaries and start public consultation on the same.
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Email Sign up The online gaming industry has witnessed exponential growth in the past few years, and India has emerged as one of the largest markets for online gaming.
In 2021, the market was worth USD 2.
2 billion and was forecasted to grow at a CAGR of 30% to reach USD 7 billion by 2026, according to Statista.
A welcome move Last year, Sushil Kumar Modi, a prominent BJP leader and MP, said in the parliament, “Online gaming is becoming a big addiction.
I would like to highlight that this sector, like the crypto industry, certainly has regulatory lacunae.
” Modi also requested a comprehensive framework of regulation for online gaming, and finally, his call was answered.
The industry has also reacted positively.
Parth Chadha, CEO and co-founder at STAN, said that it’s heartening to see the Government of India taking note of it and initiating steps to uplift these sectors with increased regulatory clarity.
“We at STAN welcome this move to appoint nodal ministries for online gaming and eSports.
This move is also in line with the much-needed agenda to recognise esports as an official sport in our country—thereby giving a fantastic boost and a level playing field to today’s eSports athletes, gaming creators, and the community at large, and further also making esports a sunrise sector in India in 2023 and beyond.
” Similarly, Roland Landers, CEO of All India Gaming Federation, said that a uniform central regulation for online skill gaming had been a long-standing industry demand.
“This step will hopefully lead to a progressive regulatory framework underpinned by consumer welfare.
” “We also welcome the move to have MYAS regulate esports as part of multisports events.
This will finally lead to the recognition of an India eSports Federation, better rules and procedures for selection of Indian teams for international events like Asian Games and also lead to better opportunities and facilities for our eSports players on par with other sports persons”, Landers added.
Why regulation is important In 2021, India had around 43.
3 crore online gamers, and the number is forecasted to reach 65.
7 crores by 2025, according to a KPMG report.
This is driven by wider availability of cheap data and smartphones, an increase in professional gaming events and esports, and better connectivity and infrastructure.
Over the years, fantasy games like Dream11, with more than 100 active users on its platform, have gained significant prominence in India.
Such skill-based, real-money gaming is generating nearly half of the industry’s revenue.
However, simultaneously, it has also led to a spike in gaming and gambling addictions.
Modi, while speaking in the parliament, said that the regulation was needed in order to curb societal costs such as gambling addictions and financial ruin.
Further, regulations are also required to prevent rogue operators from deceiving users along with setting up adequate grievance redressal mechanisms.
How will it boost the sector? Having regulations in place could also give the online gaming industry in India a significant boost.
“This will help further grow the industry and make online gaming a cornerstone of Digital India,” Landers said.
Funding for gaming companies in India has also grown significantly in the past few years in India, growing 383% year-on-year to reach $1.
7 billion in 2021.
This proves that investors have been bullish about the market; however, an unregulated sector could alter investors’ sentiment.
Ensuring an organised and transparent framework to operate within will significantly boost optimistic sentiment among investors.
Further, while transparency will also help attract more investors looking for a reliable and secure investment option, a regulatory body could raise entry barriers for new players.
