Ever since online gaming started growing as an industry in India, the regulatory pressure on the sector has been constant. There is a lot of pressure on this area these days. But it is not getting the attention it deserves.
The Animation, Visual Effects, Gaming, and Comic (AVGC) industry, which includes the popular online gaming category, is a growing sector in India. The sector has attracted foreign investment of US$ 2.5 billion so far. Not only this, this industry has given employment to more than 1,00,000 people across the country and is estimated to be worth USD 20 billion. It is an excellent example of the existing lucrative start-up ecosystem in the country.
Ever since online gaming started growing as an industry in India, the regulatory pressure on the sector has been constant. There is a lot of pressure on this area these days. But despite it having great effects, it is not getting the attention it deserves. Even though the Supreme Court of India has from time to time established a distinction between games of skill and games of luck, and recognized platforms facilitating skill-based games as a legitimate business, many states have tried to ban online gaming altogether, likening it to betting or gambling.
Recently, the Ministry of Electronics and Information Technology (Meity) was appointed as the nodal agency for matters related to online gaming through a landmark notification of the Cabinet Secretariat on December 26, 2022. The appointment comes soon after the Task Force on Animation, Visual Effects, Gaming, and Comics (AVGC) submitted its report to Information and Broadcasting Minister, Anurag Thakur. Ministry of Youth Affairs and Sports (MYAS) has been demarcated as the nodal authority for e-sports.
The move meets a long-standing demand from multiple stakeholders of the online gaming industry including states, platforms, policymakers, and users. This appointment effectively hands over the responsibility of matters related to online gaming to the Union Ministry.
Commenting on the appointment, Joy Bhattacharya, Director General, Federation of Indian Fantasy Sports (FIFS), said, “Federation of Indian Fantasy Sports (FIFS) is the nodal ministry for regulating the online gaming sector by the Government of India, Ministry of Electronics and Information Technology (MeitY). appreciates the appointment The appointment of MeitY as the central regulatory authority will provide clarity and certainty to investors, industry, and consumers. The decision is in line with the government's initiative to drive the growth of the AVGC sector and make India a global hub for online gaming. We are confident that the online gaming industry will move forward responsibly under the guidance of MeitY and work closely with MeitY in building a balanced regulatory framework."
While states continue to have the authority to legislate for activities related to games of chance and gambling, the appointment of MeitY and MYAS provides a central source for regulation for online gaming and eSports, respectively. This will avoid the policy inconsistencies of states that hinder the growth of the online gaming sector and hold back the vast AVGC sector, which promises ample employment opportunities for the youth and revenue for the government.
