The Ministry of electronics and information technology (MeitY) was appointed as the nodal ministry for online gaming.
- The Ministry of youth affairs and sports (MYAS) has been appointed to regulate e-sports as part of multiple sports events.
What is Online Gaming?
- Online gaming includes games such as Candy Crush, Teen Patti and fantasy sports among others.
- The government task force doesn’t consider games of chance, like online betting or gambling, within online gaming.
- The revenue of the Indian mobile gaming industry is expected to exceed $1.5 billion in 2022 and is estimated to reach $5 billion in 2025.
- India’s percentage of new paying users (NPUs) in gaming has been the fastest growing in the world for two consecutive years, at 40 per cent in 2020 and 50 per cent in 2021.
Key Benefits
- A uniform central regulation for online skill gaming will lead to a progressive regulatory framework underpinned by consumer welfare.
- This will help further grow the industry and make online gaming a cornerstone of digital India.
- The appointment of MeitY as the central regulatory authority will provide clarity and certainty to investors, industry and consumers.
- The announcement by the Government will aid in shaking off the misconceptions related to esports as the country recently competed for medals at the inaugural Esports Asian Games.
- The collective efforts of the gaming fraternity along with the Ministry of Youth Affairs and sports have reaped the rewards as e-sports is a legitimate sport in India.
- Esports have already been considered as a medal sport in the Olympics and Asian games and this notification will further boost the sport in the country as it was long overdue.
Key concerns
- The online gaming industry has been under fire due to its troubles with reports of goods and service taxes (GST) evasion and cryptocurrency fraud.
- There has also been a longstanding conversation about real-money gaming and the fear of gambling within the sector.
- The regulation of the industry also has had concerns over taxation rates.
Game of Skill and Game of Chance
- The supreme court of India and various high courts have held that popular games such as rummy, fantasy sports, poker, among others, qualify as a game of skill since it requires a person to learn, adapt and improvise on the nuances of the game.
- The courts in India have clearly stated that games of skill are a legitimate business activity protected under Article 19(1)(g) of the Constitution of India.
- Games of chance, such as gambling and betting, can be differentiated in the first instance itself. They are based on unpredictable outcomes as luck is the governing factor in such activities.
