IT ministry puts plan to form self-regulatory body for gaming on hold

The Information Technology Ministry has deferred plans to establish a self-regulatory body (SRB) for the gaming sector, according to a report by The Economic Times (ET). Previously, Business Standard had reported that if the ministry determines SRBs are unduly influenced by major players and lack independence, government certification for games might be considered as an alternative to self-regulation.

The ET report stated that the ministry is awaiting a consensus among all stakeholders, including gaming companies, before proceeding. The industry has been anxious since authorities have imposed a 28 per cent goods and services tax (GST) and issued fresh notices for dues amounting to Rs 55,000 crore.

The SRBs were expected to feature industry representatives tasked with differentiating between games of skill and games of chance, among other responsibilities. According to new rules notified in April, it has become mandatory for all online real-money games to display a mark indicating verification by the SRB, among other obligations. However, SRBs tasked with enforcing these rules have not yet been established.

Earlier, Business Standard had cited sources claiming that despite industry bodies having hundreds of other online gaming companies as members, the influence of a few large firms has raised questions about their applications.

Members of the All India Gaming Federation (AIGF) include major online gaming companies like Mobile Premier League, Deltatech Gaming, Nazara, Paytm First Games, and Zupee. Games24x7 and Junglee Games are part of the E-Sports Federation (EGF), while the Federation of Indian Fantasy Sports (FIFS) counts companies such as Dream11 and Fantasy Akhada as members, in addition to over a dozen fantasy sports start-ups.

The current uncertainty regarding the legal status of real-money games has also created confusion for digital platforms that display advertisements for online gaming apps. A recent advisory issued by the Ministry of Information and Broadcasting has instructed television, print, and digital media, including social media, to avoid publishing advertisements for games not certified as "permissible online games."