Online Gaming In India To Have MeitY As Nodal Ministry Now: Here's How The Industry Is Reacting

Minister of State for IT Rajeev Chandrasekhar tweeted that MeitY will soon come out with norms for online gaming intermediaries.

The online gaming space has been under the regulatory lens.

Source : Getty

The Ministry of Electronics and Information Technology (MeitY) has been appointed as the nodal ministry for online gaming, a move the industry said would bring clarity and certainty for all stakeholders. The Department of Sports under the Ministry of Youth Affairs and Sports has been notified as the nodal Ministry for "eSports as part of multi-sports events". The Centre notified these amendments to the Allocation of Business Rules recently.

Minister of State for IT Rajeev Chandrasekhar tweeted that MeitY will soon come out with norms for online gaming intermediaries.

The government is committed to fully encouraging tech innovation, but also to ensure no illegal content/services is possible. "@GoI_MeitY will soon publish rules for online gaming intermediaries and start public consultation on same," Chandrasekhar tweeted on Tuesday.

How is the industry reacting?

“This step will lead to centralisation of digital rights of gamers, something we’re all looking forward to in place of ambiguous selective state bans," tech policy lawyer and the director of EWA Centre (eSports Players Welfare Association) Shivani Jha told ABP Live. "The identification of central ministries to govern online gaming and esports will make this step procedurally more sensible and fair for gamers and companies across all states."

Zerah Gonsalves, a gaming consultant and an eSports player for over 15 years, said, "This is a welcoming move for gamers, as finally there is at least a government body that has taken responsibility for esports on a legal and central level."

Lokesh Suji, Director, Esports Federation of India, Vice President of the Asian Esports Federation, said, "Great news for us to begin the New Year. We have been constantly working on establishing the difference between esports and iGaming, and finally, our efforts have been fulfilled."

"From now onwards, we will have to build the proper infrastructure, training facilities and coaching for our young esports athletes. Only a short time until we see Esports being placed in the same league as cricket, football, basketball, etc. and having similar fan power, scale and craze," Suji added.

"The entire esports fraternity in India will be rejoicing with this welcome news which has certainly been a result of the gaming community's collective efforts spanning over the last few years. Esports have already been considered as a medal sport in the Olympics and Asian games and this news will further boost the sport in the country as it was long overdue," said former esports athlete and 8bit Creatives founder and CEO Animesh Agarwal.

"Today can be said to be the greatest day in Indian Esports history. The collective efforts of the entire gaming fraternity along with the Ministry of Youth Affairs and sports have finally reaped its rewards," said Rohit Jagasia, the founder and CEO of Revenant Esports. "We can now proudly consider Esports a legitimate sport in India. This revolutionary decision will not only transform the country's gaming landscape in terms of improved infrastructure, funding, exposure and providing education about the sector but will also put India on the global Esports map as a force to be reckoned with."

The Federation of Indian Fantasy Sports (FIFS) lauded the government’s move to appoint the IT Ministry as the nodal ministry to regulate the online gaming sector, saying, "the appointment of MeitY as the central regulatory authority will provide clarity and certainty to investors, industry and consumers." "The decision is in line with the government’s initiative to push for growth of the AVGC (Animation, Visual Effects, Gaming and Comic) sector and making India a global hub for online gaming," Joy Bhattacharjya, Director-General, FIFS said.

Bhattacharjya added: "We are sure that the online gaming industry will grow responsibly under MeitY’s guidance and the industry is looking forward to working with MeitY in creating a well-balanced regulatory framework." Bengaluru-headquartered blockchain-based esports fan engagement startup STAN said at a time when gaming and esports are emerging as the fastest-growing sectors of the economy, it is heartening to see the government taking steps to uplift these sectors with increased regulatory clarity.

"We at STAN welcome this move to appoint nodal ministries for online gaming and esports both. 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," Parth Chadha, CEO and Co-Founder of STAN, said.

Rooter, the game and esports content platform, said the recognition of eSports as a part of multi-sports events is a welcome move.

It "... comes at an opportune time for the industry which has already seen rapid growth in 2022 on the back of multiple domestic and international tournaments where Indian teams have proven their mettle," Piyush Kumar, Founder & CEO of Rooter, said.

"As esports goes mainstream, effective policy push will also see it grow at the grassroots stages, with many schools and colleges adopting esports at competitive and representative levels. It will also give a fillip to the whole ecosystem of game publishers, streaming platforms, eSports organisers and teams, creating more opportunities for employment growth in the space," Kumar said.

Online gaming under scanner

The online gaming space has been under the regulatory lens, and IT Minister Ashwini Vaishnaw had recently said the Centre would come out with a proper policy or a new law on online gaming given the impact it has on society.

Minister of State for Electronics and IT Rajeev Chandrasekhar, in a written reply in the Lok Sabha earlier this month, noted that with more Indians coming online, the potential of them being exposed to online gaming platform with harmful information has also increased.

"With the expansion of the Internet and more and more Indians coming online, the potential for Indians being exposed to online game, offered by online gaming platform intermediaries including online games that have information that is harmful or violates any law, has also increased," he had said.

The minister said that the government has come up with Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 which cast a specific obligation on intermediaries, including intermediaries offering online games, to observe diligence.

He had said that the rules provide that if intermediaries fail to observe diligence, they shall no longer be exempt from their liability under law for third-party information or data or communication link hosted by them. 

(With inputs from PTI)