Indian Online Gaming Startups Call for Government Supervision to Regulate the Industry
Indian Online Gaming Startups Call for Government Supervision to Regulate the Industry
Online gaming startups in India are advocating for government oversight to regulate the rapidly evolving sector. The founders of Dream11 and Games24x7, Harsh Jain and Trivikraman Thampy, have proposed a three-tier regulatory framework, where self-regulatory bodies (SRBs) would report to a government-led oversight panel.
In this proposed three-tier system, the first layer involves the online gaming startup's internal grievance redressal system. The second tier consists of SRBs, similar to those in the OTT (Over-the-Top) space, which are supervised by a third tier comprising a government oversight committee responsible for handling appeals and compliance-related matters.
Harsh Jain, Dream11's CEO, emphasized the need for effective regulation, drawing parallels with how SEBI (Securities and Exchange Board of India) unlocked the financial potential of the stock market. He believes that the government's involvement in establishing clear boundaries and regulations can unleash the untapped potential of the online gaming sector.
Trivikraman Thampy, CEO of Games24x7, also supports the idea of SRBs but acknowledges the government's concerns about operator control. He stressed the importance of having an independent board of directors for SRBs.
The online gaming startup industry is open to either an oversight committee or a government regulatory body, indicating a willingness to work with the government to ensure responsible and accountable operations within the sector.
During the Indian Gaming Convention, organized by the Internet and Mobile Association of India (IAMAI) in collaboration with other industry bodies, several associations, including the Federation of Indian Fantasy Sports (FIFS), the E-Gaming Federation, and the All India Gaming Federation (AIGF), signed a voluntary 'Code of Ethics for Online Gaming Industries.' This code aims to promote a safe, trusted, and accountable digital gaming industry.
As India's online gaming sector faces challenges such as recent GST changes imposing a 28% tax on the full value of bets and show cause notices for alleged tax evasion, regulatory measures become increasingly crucial for the industry's growth. Online gaming startups are looking to collaborate with the government to address these issues and foster a thriving gaming ecosystem in India.