Online gaming companies have welcomed recent changes in the IT Rules for ensuring “policy certainty”, but not everyone is enthused. Industry observers are pointing to the seeming double standards in the treatment of online gaming, which has received official backing, and betting and wagering, which have been clearly prohibited with advertising not being allowed. They are also raising concerns about possible addiction and the potential for conflict of interest through the newly suggested self-regulatory bodies.
“Why is the government trying to stop betting ads? Because apparently, they are not good for society. But, while the government takes such a stringent view on betting, it takes a totally different view on fantasy gaming, rummy, and poker, where crores of rupees are put in. Some may see this as akin to betting. There have been cases of suicide after people have lost large amounts,” said an analyst.
Others argue that there is a very thin line between fantasy and betting. “What is the real difference between picking, say, Virat Kohli in your fantasy team, and betting he will score more than 50 in a game? After all, you’re picking him because you expect him to do well,” said an industry veteran. “There are no basic curbs like limiting what a person can bet in fantasy, but when it comes to betting sites, even surrogate advertising is a huge issue.”
The analyst added that though the government has paved the way for formation of self-regulatory bodies (SRBs) – which will have funding and experts from the industry, apart from non-industry professionals, such as, child rights specialists, public policy officials, psychology and mental health experts, and educationists – a clear case of conflict of interest will crop up. “When it comes to regulating the real-money gaming industry, kid gloves are being used. They will be regulated by SRBs created and funded by the companies themselves. How can they be expected to be fair and objective?” the analyst said.
Gaming companies defended the sector, which claims to have over 30 crore users in India and aspires to become a $20-billion revenue industry by 2030. However, they agreed “these are early days, and rules will evolve and strengthen as the time passes”.
Harsh Jain, CEO & co-founder of Dream Sports – India’s biggest fantasy sports gaming company that was last valued at $8 billion – said the rollout of a policy and regulatory setup is a “watershed moment”. “Companies will make sure SRBs are at arm’s length, and none of the gaming companies will be a part of them,” he said.Defending fantasy sports, Jain said, “We take care to ensure wagering is not allowed. You can’t bet on the outcome of any event. For example, if it’s cricket, you can’t place money on the result of one over, one innings, one player, one team, or the final outcome. In fantasy gaming, you create a squad of players from both teams, and the combination of the performance of the players becomes your score. This requires skill and knowledge, and can’t be done just by chance.”
Trivikraman Thampy, founder-CEO of Games24x7, told TOI from Florida that while the industry now awaits clarity on GST taxation (which should happen around June), the IT Rules and regulations will help give legality and a positive direction to gaming operations.
“We already have court judgements that made it clear games of skills are not gambling. This includes fantasy games, rummy and even poker. So, that debate is over. With the ban on wagering, the government has put curbs on games of chance, which will be very closely monitored by the SRBs too, or else the government will step in if anyone files a complaint,” he asserted.
Asked about social and financial problems due to gaming addiction, he said the industry is aware of the issue. “We set money limits, time limits. If a player is playing for far too long, he or she is given warnings. The rules will get strengthened over time. The new IT Rules are a giant step for the industry, and will bring more protection for consumers now that every game has to be registered and carry a verification mark, denoting approval from an SRB.”
Joy Bhattacharjya, director general of Federation of Indian Fantasy Sports, said operators are keen to ensure protection of consumers. “If someone breaks the rules, we will call them out. In any case, the IT ministry has control over the SRBs and can do course correction at any time.” Supreme Court lawyer Sunieta Ojha said the real test would lie in implementation. “Will the SRBs really regulate? And how will the government ensure this?” she said.