India needs unified regulator for booming online gaming industry: Gujarat NLU report

The online gaming space in India needs a uniform legal framework, evidence-based policy interventions, and an important equilibrium between user protection and the industry's economic potential, a recent report has said.

The Gujarat National Law University (GNLU) on Wednesday released the "Evaluating Blanket Bans and Mandatory Limits in Gaming" report, calling for regulations on the online gaming industry.

With over 500 million gamers, India is the second-largest market globally after China, the report said.

"This rapid expansion, as with any emerging technology, has brought forth challenges, particularly concerning user safety and financial risks. The absence of an overarching regulation has left users in a grey zone," it said.

The report studied international frameworks and noted that unlike India, nearly all jurisdictions have established licensing processes and enforced a duty of care for gaming operators.

"India should adopt a regulatory framework that mandates operators to incorporate limit-setting features for users, thus ensuring a fine balance between fostering economic growth and safeguarding users," it said.

A dedicated regulatory body that oversees online gaming, ensures compliance, and promotes responsible practices is the need of the hour, it added.

It said a uniform central law is essential to replace fragmented state regulations.

"It is essential to develop evidence-based practices and policies that can adapt to the rapidly evolving gaming landscape. By focusing on consumer protection, we can ensure that players enjoy a safe, fair, and transparent environment, thereby fostering trust and sustainable growth in the sector," said Justice CK Thakker, former judge at the Supreme Court of India.

The report recommended that obligations be put on operators to conduct financial risk checks on customers who may be at risk of harm due to unaffordable and unsustainable gambling losses.

In 2022,  the central government formed a seven-member inter-ministerial task force chaired by former Minister of State for Electronics and Information Technology Rajeev Chandrasekhar.

The Allocation of Business Rules, 1961, was amended based on the task force's recommendations to designate the Ministry of Electronics and Information Technology (MeitY) as the nodal ministry for online gaming in India.

The current Online Gaming Rules in India do not provide for state-imposed time and money limit restrictions but instead mandate SRBs (self-regulatory bodies) to publish a comprehensive framework to prevent user harm and addiction.