The Future of Online Gaming in India: Exploring New Possibilities
India’s online gaming industry is experiencing unprecedented growth, driven by technological advancements and the increasing popularity of smartphones. According to a recent report by EY, India has the second-largest number of online gamers in the world, with 42.5 crore players, and real money gaming (RMG) accounts for 83% of the entire market. To harness this immense potential, a progressive regulatory framework is necessary to support innovation. Progressive policies can stimulate economic growth, job creation, and technological development, leading to the emergence of a strong industry and making India a global gaming hub.
The Need for Stricter Advertising and Marketing Regulations
The government has issued recommendations on advertising standards for intermediaries in online gaming and has called on media companies to adhere to ASCI guidelines. Additionally, explicit instructions have been given to avoid promoting betting and gambling platforms. However, unscrupulous foreign platforms continue to advertise using mass communication mediums. In August 2023, the government authorized the Ministry of Information and Broadcasting (MIB) to regulate gaming content and online advertising policies. MIB is likely to soon introduce a strict Advertising Code that will apply to all digital media entities, including online gaming platforms. The industry advocates for policies that clearly define and legally regulate advertising standards.
Policies for Responsible Gaming and Consumer Protection
The industry eagerly awaits clarity from the Ministry of Electronics and Information Technology (MeitY) regarding regulations, especially concerning the establishment of Self-Regulatory Organizations (SROs) as originally planned. Meanwhile, the current rules for online gaming in terms of Communication Messaging and Digital Media Ethics do not sufficiently differentiate between “permissible online games” and the unethical or illegal operators currently in the market. Although larger skill gaming companies already implement responsible gaming measures, such as rigorous age verification processes, algorithms that limit excessive gameplay, and access to educational resources, self-healing, and transparent transactions, a more explicit policy framework would be beneficial. Trust symbols awarded to compliant platforms could assist consumers in identifying and choosing responsible gaming environments over exploitative ones.
Financial Transparency and Compliant Payment Processes
The Reserve Bank of India (RBI) has examined payment gateways in India to identify aggregators providing services to illegal entities, including gambling platforms. The differentiation between “permissible” and “non-permissible” online games, as intended by MeitY, would simplify this process, but delays have created regulatory gaps. Illegal platforms masquerading as “skill games” continue to operate, misleading consumers. According to the RBI, payment aggregators have the responsibility to restrict access. Therefore, it is crucial for fair companies to adhere to RBI-compliant payment processes, enabling traceability of funds to identify and eliminate dishonest players.
Technology-Driven Gameplay
Today’s companies are taking significant steps to promote responsible gaming on their platforms. From rigorous age verification processes and machine learning algorithms that limit excessive gameplay to educational resources, self-healing options, and transparent transactions, these initiatives aim to create a safer gaming environment. These advancements are crucial in implementing effective measures to address issues such as addiction, harassment, and inappropriate online content. Artificial intelligence algorithms analyze player behavior in real-time, identifying patterns indicative of problematic gaming habits. This allows companies to intervene proactively by offering support or implementing restrictions when necessary to promote a healthy gaming environment. These systems continually learn from user behavior and provide a dynamic and responsive approach to caring for user well-being.
Equal Opportunities for Small Startups
The ability to distribute applications economically and at scale is crucial for all companies operating in the digital industry, especially for smaller or new startups. Startups offering real money gaming also face a unique challenge in this field. Google’s pilot program, which aims to allow daily fantasy sports and rummy gaming apps on the Google Play store for users in India, is set to expire on January 15, 2024. Companies hope that Google will extend the deadline or continue hosting existing apps in its Play store until additional policy clarity is obtained from the government, as such disruptions can stifle innovation and should be addressed through policy changes.
The Role of Collective Actions in Shaping Policy
India has witnessed successful collaborations between the industry and the government in various sectors, leading to progressive regulatory changes. Previous collaborations have resulted in policy initiatives that promoted connectivity and accessibility in the telecommunications sector. Similarly, the growth of the IT sector has benefited from proactive actions that drove innovation and global competitiveness. Now, the gaming sector, although self-regulating, requires more specific operational clarity from the government.
India’s online gaming industry is poised for significant economic growth, with a rapidly growing user base and technological prowess. With effective utilization of policies, this industry can make a significant economic contribution. Sumanta Dey, Director – Public Policy and Corporate Affairs, Head of Digital Works.
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The source of the article is from the blog procarsrl.com.ar