The gaming industry in India has been issued an ultimatum by the central government, stating that if a proposal for a self-regulatory organization (SRO) is not submitted within the three-month deadline ending on July 6, the government will establish its own SRO to enforce the online gaming rules notified in April.
Following the announcement of the online gaming rules by the Ministry of Electronics and Information Technology (MeitY) on April 6, gaming companies and their representative bodies were given a 30-day timeframe to form an SRO. However, it has been more than a month, and no consensus has been reached on the structure, nature, and membership of the SRO, according to ET reports.
Various industry bodies, including the All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and Internet and Mobile Association of India (IAMAI), have conflicting interests and differing opinions on how the gaming SROs should operate.
Despite the ongoing differences, industry bodies such as AIGF and the Federation of Indian Fantasy Sports (FIFS) have expressed their commitment to working with industry partners to establish an SRO in alignment with the new regulations.
On the other hand, MeitY is considering an independent structure for the SRO, rather than relying on existing industry and gaming associations. A ministry official emphasized the need for an organization that focuses on public policy and includes representatives from various backgrounds, such as gamers, teachers, and psychiatrists, to ensure unbiased decision-making and prevent undue influence.
The online gaming rules were introduced by MeitY after months of consultation, with the aim of providing a stable and consistent framework for startups operating in the online gaming sector. Minister of State for Electronics and Information Technology, Rajeev Chandrasekhar, highlighted the opportunities that online gaming presents for Indian startups and acknowledged the challenges they face due to ambiguous legal frameworks. The new rules aim to create a predictable environment for startups in the online gaming ecosystem.
As the deadline approaches, the gaming industry must work diligently to form an SRO that meets the government’s expectations and ensures the effective implementation of the online gaming regulations. Failure to do so may result in the government taking matters into its own hands to regulate the industry.
