'Baseline central norms for gaming will enable uniformity in compliance'

Creating a uniform set of rules for gaming will help domestic players and weed out unscrupulous offshore operators, says Sumanta Dey, VP at Head Digital Works which runs A23 Rummy and A23 Poker

Baseline norms from a centralised body to regulate India’s growing gaming sector would bring uniformity in compliance and help curb the presence of unregulated offshore entities, argues a senior policy executive from gaming firm Head Digital Works.

 

“It is crucial to establish a baseline level playing field for regulations. It will enable uniformity across regulations across the sector, while also enabling scope for some modifications at an individual state level,” said Sumanta Dey, vice president (corporate affairs and public policy) at Head Digital Works.

 

These baseline norms could establish core operating guidelines while allowing states to build on them based on their specific needs. For companies, this would ensure uniformity in regulatory compliance.

 

Head Digital Works currently operates online rummy platform A23 Rummy and poker site A23 Poker. 

 

The role of public policy representations are critical, given that the Centre and states continue to look at ways to regulate the industry.

 

A central body can look at formulating regulations for critical aspects such as KYC (Know Your Customer) norms, protection of underage players, payment gateway usage, advertising standards, and grievance redressal mechanisms.

 

“States can adopt it and formulate respective regulations based on individual needs of the state. They can factor in things like unique public health needs, safeguard users, and protection from illegal offshore gamblers, gambling operators,” Dey explained.

 

A lack of uniform framework may provide illegitimate offshore companies an edge over regulated domestic ones based on state-specific stringency of certain operating norms leading to challenges.

 

“We are happy with the proactive steps states are taking towards regulating the RMG sector. However, diverse regulations in different states can provide a loophole by which the unregulated offshore sector can benefit over legitimate domestic companies,” he explained. 

 

Dey cautioned that consumers may take ‘a path of least resistance’ which can cause consumer harm, financial addiction and other social issues, all of which make a strong regulatory environment important.

 

The call for regulation comes at a time when various states have taken up the mantle of regulating the real money gaming (RMG) industry.

 

For instance, the Madras High Court upheld Tamil Nadu’s regulations that impose time limits on RMGs such as rummy and poker earlier this month. The state’s regulations prohibit real-money gaming platforms from operating between midnight and 5 a.m.

 

“We are appreciative of the Madras High Court judgement, which is progressive in the sense of what the government wants from the sector while ensuring that the industry has some guardrails within which it can grow,” Dey said.

 

“Tamil Nadu Online Gaming Authority’s (TNOGA), has been a frontrunner when it comes to setting the benchmark for what regulations could look like in the states and we appreciate that for the state government, public health is of utmost concern,” he conceded.