Global Gaming Policies: What Can India Learn From Other Countries

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With the internet and online platforms being largely accessible, the constant rise of online gaming activities raises necessary concerns for the National and State governments with the duty to regulate.

Online Gaming is classified under the broad banner of 'betting and gambling' which falls under the State list of the Indian Constitution. The Public Gambling Act, 1867 ("the Act") has been the base for most state legislations nationwide.

The Act prohibits 'betting and gambling' activities while creating an exception for 'games of skill' in comparison to 'games of chance'. The courts have endorsed this exemption of 'games of skill' through the years.

India's regulatory framework is fragmented, with online gaming operators facing concerns regarding the legality, regulatory and compliance requirements at every step. The lack of a proper statute regulating 'games of skill' coupled with an absence of a proper regulatory mechanism is one of the major causes of concern regarding 'gaming' in India.

This article provides an analysis of global gaming policies to narrow down certain aspects that India can incorporate into its gaming framework.

Centralised Gaming Authority and Licensing

Most progressive gaming jurisdictions across the world such as Malta 3, Curacao 4, and Gibraltar provide for a Centralised Gaming Authority that oversees regulation as well as licensing for operators of online games.

Such authorities not only oversee legislation in this regard but also deal with unlicensed gaming, illegal activities and compliance with existing laws. In India, a centralised gaming authority established under a specific statute along with clear operational rules, standards for different types of games, definite licensing requirements and regulatory measures to keep such gaming operators in check would be ideal. The lack of legislative distinction between 'games of skill' and 'games of chance' and different standards for each State poses a major hindrance to any level of uniformity among gaming operators.

Malta, for example, allows different licenses for different types of games along with different regulations covering a wide range of issues like player protection, tax collection, compliance and enforcement and anti-money laundering provisions to keep the operators in check and to protect citizens and the economy from unethical practices.

Malta licenses any game that directly or indirectly creates economic activity. Enforcement of regulatory standards reduces ambiguity and creates a system of checks and balances.

Responsible Gaming Policies

Another effective reform is effectively addressing addiction, restricting access to games for minors, and more which can be addressed through mandatory requirements under relevant responsible gaming polices backed by law. Linked to the original licensing requirement, licensed operators ought to be obligated to have specific policies to promote responsible gaming and to help identify problem gamblers and more.

The UK has adopted a levy on operators making them contribute towards funding for
addiction support, 5 while Malta and Curacao mandate licensed operators to have internal Responsible Gaming Policies available to players at all times.

6 Malta further requires operators to make available a leaflet to players to ensure there are procedures in place to enable self-exclusion or lock-out from their accounts. Such regulations would help address the concerns of the Indian government as well as participants in terms of the psychological and financial impact related to real money online gaming.

Conclusion

While The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 were introduced by the Indian Government specifically addressing the issues discussed above, their implementation has faced challenges.

Novel, centralised laws, regulations, licenses, and regulatory control via an Authority along with a mandatory requirement for proper enforcement of responsible gaming measures form a promising way for India to make the most of the burgeoning online gaming industry while keeping adverse impacts in check.

- By Vidushpat Singhania, Managing Partner at Krida Legal