Regulate all online skill games, not just fantasy sports: Sameer Barde

The online gaming industry on Monday collectively urged the government to set up a self-regulatory body to standardise regulations for the entire online skill gaming sector and not just fantasy sports. This was in response to a draft paper by the Niti Aayog that set guidelines for the industry last month. Sameer Barde, CEO, The Online Rummy Federation, tells Dhruv Munjal that a common regulatory body is a must, while arguing that the negative perception around real-money games in now changing. Edited excerpts:

What are the recommendations that you’ve made to the Niti Aayog?

Firstly, I think it’s a brilliant move to have regulations for the online gaming industry. But at the same time, it’s important to understand that fantasy games are only a small part of the entire skill-based gaming ecosystem. All the games available today — rummy, poker, bridge, chess, quizzes — are based on skill and played for real money. The problem here is that if you create a silo for only fantasy games, then the other games will have to come up with regulatory frameworks of their own. There is an equal, if not a larger need, to regulate the broader skill gaming industry.

Since the main objective here is to talk with states — gaming remains a state subject — and agree to the idea of a “safe harbour”, having different bodies is an unviable way of conducting business given that there are so many commonalties among these games. Keeping that in mind, our recommendation is that there be an overarching regulatory body for all skill games.

This is a burgeoning industry, with new stakeholders being added all the time. How will a standardised set of guidelines benefit the sector?

It will bolster innovation and, more crucially, provide the right environment for player safety to become central and upfront. Additionally, if there are concerns expressed by state authorities, there will be a single point through which new regulations can be rolled out to all operators. There is a considerable overlap when it comes all these games, which means that the challenges are more or less similar. One unified body will offer multiple benefits, with no downsides.  

Will it also encourage investment?

Absolutely. There is no doubt that there is already tremendous interest among investors. But a proper set of regulations from the government will ensure greater stability. The Niti Aayog has noted that the fantasy gaming industry alone has the potential to attract foreign direct investment of more than Rs 10,000 crore over the next few years, as well as generate 1.5 billion online transactions by 2023. We anticipate a high demand for investments coming in.

Real-money games have been perceived somewhat negatively in the past. Is that changing?

As far as rummy is concerned, the courts, over the years, have clearly established its legality. The industry as a whole has been growing at 25-28 per cent CAGR in the past few years, clearly indicating that there is massive pent-up demand for this type of entertainment. The challenge now is to serve users in a responsible and sustainable way, and follow all guidelines.

Despite its huge popularity, the online gaming industry is still at a nascent stage in its development. What concerns do you foresee?

One of the key issues is fly-by-night operators — people who want to make a quick buck and get out. But then again, clearly defined regulations will automatically account for that problem. Then there are states that have kept us out. In Hyderabad last year (online gaming is banned in Telangana), for instance, the police unearthed a multi-crore scam where a Chinese man was running an illegal gambling scheme. What a blanket ban does is keep legit players out — because they follow the laws of the land — and often allows devious tricksters to flourish.

The challenge is to tackle such elements and win player trust. Once the guidelines are formally in place, gaming platforms will be in a better place to ensure user safety and also build confidence.