Chase India Publishes Policy Proposal on Skill Gaming Regulation

A unified framework for online skill gaming is needed to protect consumers, business interests and the public at large. Taking a leaf out of successful foreign examples, India can build its own robustreal-money regulation.

More than a Draft Paper: Online Gaming Needs Government Involvement

A leading Indian public policy consultancy has recently published a framework proposal for
regulating online skill gaming in the Union. Taking account of various stakeholder interests, the
new approach stresses the importance of having nationwide standards for real-money gaming,
most of which is done online.

Chase India spoke about a “unified framework” for skill games to enable authorities to impose
protection for minors and consumers in general, mostly by keeping illegal and unscrupulous
operators from the market. Yet, an efficient policy also needs to guarantee the growth of an
industry which has seen unprecedented global expansion in recent years.

The proposed policy separates classic gambling like online roulette for real money from casual or sports-related skill gaming. Recommended reforms require Central-level legislation, as current attempts for self-regulation have failed to achieve ethics standards, protect consumers or guarantee fair economic competition between desi and offshore gaming companies.

Besides explicit moral criteria, a proper regulatory mechanism needs to have a grievance
redressal procedure, age and content limits, as well as elevated site security and user privacy
requisites. Although Chase envisions a “light-touch” regulation, financial protection is
fundamental, both domestically and against aggressive offshore gaming platforms.

The policy paper invokes the IT Rules (part of the Digital Media Ethics Code) passed just last year,calling for their amendment to include online intermediaries and multi-gaming platforms. The Ministry of Electronics and IT (MeITY) needs to initiate meaningful changes to online skill game regulation, Chase insists, with the support of other competent government agencies while consulting industry exponents all along.

How Is Online Skill Gaming Regulated around the World?

Similar reforms have already been adopted in most mature gaming markets, market studies
reveal. While player protection is always the leading motivation, real-money games are regulatedwithin a business context and restricted via a licensing system more often than not.

The economic importance of the online gaming industry is always taken into account, from
Europe to the US and Australia. The public interest is upheld via tax revenue gains, well-
structured consumer protection and long-term job creation. Arguably, a fundamental role is
played by supervisory agencies (Gambling Commissions) through monitoring tools and public
awareness campaigns.

Licensing regimes regulate both the few remaining State monopolies around the world, similar to the Indian online lottery, as well as private gambling and sports betting operators. Ultimately, the industry’s transparency ends up attracting more investor interest and eliminating undesirable system risks.

The Chase India proposal might be missing some elements successfully implemented elsewhere –like a Gaming Commission or formal responsible gaming policies. It also needs somewhat better legal definitions, although these could certainly come at a later stage. However, it is definitely a step in the right direction anyway we look at it.