The government wants to make India the 'game development capital of the world' and hopes the proposed Promotion and Regulation of Online Gaming Bill, 2025 - tabled in the Lok Sabha Wednesday afternoon - will set the country's game development industry on that path.
The intent is clear, S Krishnan, Secretary of the Ministry of Electronics and Information Technology, told NDTV. The bill creates a category for 'safe' online games, i.e., e-sports and online social games, and the development of these will be backed by the government.
It also cracks down on money-based games and gaming platforms offering gambling opportunities, including poker, rummy, and other card games, arguing these lure people with false promise of large and quick payouts and lead to financial and emotional distress.
The point of difference between these two categories - i.e., 'skill' vs 'chance' - has been a grey area for quite some time, allowing some operators to cloak gambling games as 'skill-based'.
"One of the issues that came up repeatedly in meetings with the gaming sector is clarity on classification. Parts of the sector believe some people and platforms are causing financial and social distress, related to addiction, and that are tarred by association," Mr Krishnan told NDTV.
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"One part of the gaming industry is doing that whereas another is more positively oriented... in terms of gamification creative content development. That portion needs to be encouraged. For that, a clear delineation needs to be made and has been offered in this bill..." he said.
Mr Krishnan also said concerns over online money games, or online gambling platforms, had been flagged by political leaders from different parties, including those from the opposition.
"The point here is between 'skill' and 'luck'... this grey area was used to argue what suited operators in different jurisdictions. But there are no game of pure chance... that is like a coin toss, and the outcome should be 50-50. That doesn't happen in these games," he explained.
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The proposed bill highlights concerns over addiction to games, fraud by operators and developers, and inconsistences in state laws regarding gambling. It also proposes stricter oversight of platforms, particularly those offering real-money games, such as poker.
Sources said people who play these games are victims (and) will not be punished... but there will be action against those who run real money gaming platforms, facilitate transactions, etc.
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Last week, in connection with a federal investigation into illegal betting apps - which masquerade as 'a game of skill' to appear different from gambling games, which are outlawed by Indian laws - sources told NDTV this 'market' is worth Rs 8.3 lakh crore and is growing at 30 per cent annually.
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