New Delhi: The Narendra Modi government is learnt to have set up an online gaming regulation committee to identify a ministry to oversee the overall online gaming industry in the country. The panel is also asked with studying global best practices to help recommend a regime for a uniform regulatory mechanism, as reported by the Hindustan Times on Wednesday. The development comes days after the Rajasthan government prepared a draft Rajasthan Virtual Online Sports (Regulation) Bill, which recommended the setting up of a Virtual Online Sports Commission.
The decision has been largely welcomed by gaming advocates and legal professionals alike, who told ABP Live that the government’s interest in protecting gamers’ rights is highly appreciated.
Online gaming regulatory panel: What will the panel’s roles be?
Primarily, the panel is reportedly tasked with recommending a regime to establish a uniform regulatory mechanism for online gaming in the country. Apart from identifying an overseeing ministry, the panel will also create a list of proposed central laws required to regulate the online gaming industry. The panel will consult experts and submit a report in three months.
Online gaming regulatory panel: Who will be the members?
The online gaming panel will comprise the CEO of NITI Aayog, as well as secretaries from various government wings such as home, sports and youth affairs, information and broadcasting, electronics and IT, and others.
Will online gaming be taxed in India?
While there has been no word on if the new online gaming regulatory panel will recommend taxation of online gaming in the country, the Group of Ministers (GoM) at a meeting earlier this month reportedly made a unanimous call to impose a GST of 28 percent on online gaming, casinos, and race courses. At present, online gaming is clubbed together with casino and horse racing in the country, and hence faces a GST of 18 percent.
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This is imposed on the service fee a company charges for its online gaming services, and not on the winning amount. For now, it remains to be seen whether the 28 percent charge will be levied on the service fee or the winning amount.
What does the Rajasthan online gaming draft bill propose?
On May 17, the Finance Department of the Rajasthan government drafted a Virtual Online Sports (Regulation) Bill, a copy of which was seen by ABP Live. As per the draft, a Virtual Online Sports Commission will be set up to regulate online gaming activities in the state.
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Offenders will also face a penalty of up to Rs 2 lakhs on license and advertising violations, as per the draft. Currently, there is no provision of penalties for online gaming in the state.
Online gaming regulatory panel: What does this mean for gamers in India?
As mentioned earlier, the government’s move to set up a regulatory committee for online gaming has been welcomed by many. Shivani Jha, a tech policy lawyer and the director of EWA Centre (eSports Players Welfare Association), told ABP Live, “A central legislation for online gaming is a welcoming move. It will hopefully avoid piecemeal legislation and judicial challenges at the state level and involve all stakeholders in online gaming for participation.”
“With player participation increasing in every form of online gaming it is becoming increasingly important to protect their rights,” Jha added.
As per Zerah Gonsalves, a gaming consultant and an eSports player for over 15 years, “There is hardly any structure in the industry as of now, this will help create the required foundation to grow and nurture the overall gaming ecosystem.”
Gonsalves told ABP Live, “it’s a great move considering the uncertainty this industry has, one can hope that the government will protect the rights of eSports players which will only help them participate in global competitions and represent the country.”
Online gaming industry in India: Will it boom in the future?
As per a January 2022 report by the India Brand Equity Foundation (IBEF), India saw a growth of 40 percent in 2019-20, generating net revenue of $1.5 billion. By 2025, the industry is expected to surpass the $5-billion mark.
For now, it remains to be seen which recommendations the online gaming regulatory panel will make and what effect their implementation will have on the industry.