Gaming industry experts and stakeholders discuss the issues faced by the sector. In the lack of clear definitions and central licensing legislation, self-regulation seems to be the way forward.
A Panel Discussion between Experts and Key Stakeholders Searches for the Answer
“Can governments be more specific in curbing games that encourage betting instead of a blanket ban on all money-based games? Can there be a middle ground between a thriving industry and user protection? What are the various roadblocks that could come in the way of this sunrise industry?”
These were the questions discussed at a recently broadcasted masterclass episode on ‘Gaming Or Gambling? Future Of The Gaming Business In India’ moderated by Chandra R Srikanth from Moneycontrol. The panel discussion featured four distinguished guests led by Nazara Technologies CEO Manish Agarwal and including Anurag Khurana, founder of Penta Esports, Roland Landers, CEO of All India Gaming Federation (AIGF), and Gowree Gokhale, partner at global legal and tax counselors Nishith Desai Associates.
According to Manish Agarwal the whole question of whether online gaming should be regulated or not revolves around the segment of skill-based real money gaming. In his view, the issue arises from the deeply rooted in Indian society Gandhian values that perceive anything connected with greed to make money as a vice. Thus, RMG is perceived as something bad that needs to be prohibited.
A point of agreement between Agarwal and Anurag Khurana emerges around the notion that online gaming is a very broad term and definitions should be clear, especially if provided by government regulation. For example, RMG and Esports are only parts of online gaming that have different target audiences.
Self-Regulation is Important in the Gray Area
Gowree Gokhale points out that when an industry is in a gray area in terms of the law, it is important that all companies from the sector “come together and self-regulate”. In this way, the industry members will follow a common plan and will show everyone involved that they are responsible.
Anurag Khurana joins saying that industry bodies like the AIGF should implement even stricter guidelines which should be self-imposed by the RMG industry before the government rules it. Then Khurana proposes a limit on played amounts to be set up.
Manish Agarwal adds that big win promises and cash awards should be altogether removed from advertising, not just on TV as has already happened, but along digital channels as well. He also suggests the introduction of an industry-wide ‘cool off’ period that will counter the usual consumer behaviour of a person losing on one platform and then starting to wander through platforms trying to recover losses, instead of taking a break.
National Regulation and Licenses are Sought by the Industry
According to Gowree Gokhale, the main advantage of a central regulation is that it will level the field for all gaming operators, offshore and Indian alike. Whereas state by state legislation is difficult to be implemented in cyberspace, and even more of a challenge to be enforced against foreign operators, a national regulation will be enforceable on all operations in India, regardless if based locally or abroad.
Mrs Gokhale points to the UK and a number of European countries as good models of licensing regimes for the industry of RMG and online casino India can implement. Roland Landers adds that the industry is asking for a national framework, be it built upon the foundation of existing self regulation or otherwise, finding which is the appropriate ministry for the purpose.
A recent global analysis on regulation regimes by ENV Media shows that the focus of contemporary national licensing mechanisms has shifted “from data protection to gambler protection” working towards addressing issues related to problem gaming.
Operators working under such national licensing regimes are required to exchange data on problem gamers and maintain black lists. They are also obligated to implement various responsible gaming tools like behaviour monitoring mechanisms, self-exclusion procedures, and maintain links to organizations that offer support and help to gamblers.
Currently, in the lack of a national licensing regime in India, a number of online gambling operators, including Pure Win among other casino platforms, strive to use the most respectable international licenses, e.g. issued by the Malta Gaming Authority, Curaçao, or similar, in an effort to prove their integrity to gamers on the way to a sustainable business.
The Market is Sizable, both in Revenues and in User Base
Nazara’s Manish Agarwal points out that in-app purchases in India have almost exceeded the $50 crore threshold, marking a tenfold growth within a three-year period from $5 crore.
A report by KPMG estimates the FY 2021 revenues from India’s online gaming market at ₹13,600 crore, including ₹4,980 crore from RMG, generated by 43.3 crore users, and projects by FY 2025 the Bharat user base to grow to 65.7 crore gamers producing total revenues to the amount of ₹29,000 crore, ₹6,130 crore of that figure coming from real money games.
