MeitY Reiterates Its Jurisdiction For Online Gaming - Calls For Consensus On Central Law For Gambling

The Minister of Electronics and Information Technology (MeitY), Ashwini Vaishnaw, while addressing the Budget session of Parliament, reiterated the need for regulation of the online gaming sector in India. While responding to a query, Minister Vaishnaw emphasized the importance of a consensus-driven approach toward regulation, taking into account the views of all stakeholders, including the industry, consumers, and experts.

The Minister also suggested that a long-term collaborative approach with the states can be undertaken to formulate a new central law for regulating online games and online gambling.

MeitY was appointed the nodal ministry for the online gaming sector in December last year and since then, the Ministry has released draft regulations for the sector, which were released in January for public consultation. Prior to the release of draft regulations, MeitY had been engaging in multiple rounds of discussions with the industry stakeholders, including the state governments and the users, to draft a framework for the sector. The IT rules have been restricted only to online games that are not gambling or betting, given the fact that they would need consensus from states to frame laws for gambling and betting.

Minister Vaishnaw stated that the government is committed to working with all stakeholders towards a solution that benefits the industry and its users, while ensuring the safety and security of citizens. He advised the Parliament with a call for action to drive consensus among all states. He also urged the industry to cooperate with the government in this effort. He mentioned that the difference between games of skill and games of chance has already been made in 17 States that have begun amending or have already amended the Public Gaming Act to include sections barring gambling. 

The Minister recognised the sector's contribution to the digital economy and the favourable effects of online gaming on the economy, including the emergence of new employment prospects. He highlighted that regulation should support development while attending to everyone's concerns.  

He highlighted the rapid growth of the online gaming industry in India, which has seen an increase in the number of players, and the types of games and platforms available. The lack of proper regulation has led to several challenges, he said and for the same, he stressed on the need for a comprehensive framework.

He stated that the regulation of an online business is complicated and hence, it is crucial that a clear legislation be drafted for the industry. He added that it was important for the government to ensure that the regulation is comprehensive, transparent, and fair. He highlighted further that because the medium through which such games is the internet, the operators qualify as intermediaries and fall squarely within the jurisdiction of the Central Government and the the central government has taken the right first step in bringing online games within the purview of regulation under the Information Technology Act

Following Minister Vaishnaw statements in the Parliament session, it is clear that the Central government has taken regulation of online gaming under its control and is moving forward with a strong intent to frame robust regulations for the sector. It has also acknowledged the limitation of States in regulating the sector while reaffirming that the jurisdictional role of states is restricted only to regulation of betting and gambling. At the same time, the Minister has invited state governments to assist Centre in framing a robust central law for both online gaming and other activities like online gambling.