Rajasthan Drafts Bill To Regulate Online Gaming, Establish Virtual Online Sports Commission

Rajasthan will set up a Virtual Online Sports Commission to regulate activities in the state.

Currently, there is no provision of penalties on online gaming in Rajasthan.

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New Delhi: Rajasthan is planning to bring a legislation in order to regulate online skill-based games, or fantasy games. A draft of the Rajasthan Virtual Online Sports (Regulation) Bill was prepared by the state’s Finance Department on May 17, 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. 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.

While earlier reports suggested that the state was looking to amend the Rajasthan Public Gambling Ordinance, 1949, it appears that the state has now decided to bring in a new legislation and not club online gaming directly with public gambling. The draft, too, mentions that no part of the gambling ordinance shall apply to "the offering of Virtual Online Sports for money or valuable security by a licensee under this Act." The operation of lotteries will also not come under the new bill. 

As part of the Rajasthan Virtual Online Sports (Regulation) Bill, gaming service providers will need to obtain a license to be able to operate in the state. Such a license, if not cancelled or surrendered, will remain in force for 10 years. It should be noted that only "Indian citizens or legal entity incorporated in India" will be eligible for an online gaming license, as per the draft.

To ensure the administration and regulation of online games, the state government will establish the Rajasthan Virtual Online Sports Commission. The commission will comprise three members, including a retired High Court or Supreme Court judge and a person with "vast experience in the field of sports and sports federations."

The draft bill also proposes a fine of up to Rs 2 lakhs upon failing to meet the directions of the Advertising Standards Council of India (ASCI), or if a licensee is found to have violated the code of ethics. If an entity is found to operate without a license, a penalty of up to Rs 4 lakhs per day of contravention will be imposed. 

Shivani Jha, Director, eSports Players Welfare Association (ePWA), told ABP Live that the draft bill is a "welcoming move." "It is for the first time that a state in India has initiated the legitimisation of virtual online sports," said Jha. "It is especially a great move when it comes to eSports and is encouraging for eSports players given the Asian Games and Olympics are around the corner."

"Licencing of gaming companies and self-regulation will eliminate issues of bot usage, online sexual harassment, and data privacy, further encouraging both gamers and gaming companies to develop Indian-made games and contribute to the AVGC sector," Jha added.