Top Indian Gaming Bodies Unite For Ethical Gaming Practices
In an effort to create a "safe, trusted and accountable" market with an emphasis on consumer protection, four major gaming industry associations in India signed a voluntary code of conduct for online gaming intermediaries on 6 December.
This came after the Ministry of Electronics and Information Technology (MeitY) announced changes to the IT Act 2021 pertaining to gaming in April 2023.
These amendments will enable various self-regulatory organisations (SROs) to decide whether or not a real-money game involving the transfer of money is allowed to operate in India.
However, because the government has not yet announced any SROs for the industry, these regulations have not yet been put into effect nationwide.
Previously, gaming startups and companies have proposed at least two self-regulatory bodies (SRBs) to the Centre, which intended to recommend a testing framework consisting of several tests to determine whether a game is a game of skill or chance.
The Ministry of Electronics and Information Technology (MeitY) announced new regulations for online gambling on April 6. These regulations forbid any game that incorporates betting or wagering and entail a framework of multiple self-regulatory organisations (SROs). The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules 2021 have undergone new amendments that incorporate these rules.
The Indian gaming industry has experienced substantial growth, reaching USD 3.1 billion in revenue for FY23, with a projected USD 7.5 billion revenue mark by FY28. However, challenges, such as the recent 28 per cent GST tax regime impacting the real-money gaming segment, have added complexity to the industry landscape.
The online gaming industry, on December 6, signed a voluntary 'Code of Ethics for Online Gaming Industries' at the Indian Gaming Convention (IGC), organised by the Internet and Mobile Association of India (IAMAI) along with Federation of Indian Fantasy Sports (FIFS) and the E-Gaming Federation (EGF).
This serves as a ‘Joint Declaration of Intent’ by the signatories to commit to building a safe, trusted, and accountable digital gaming industry with a focus on user protection.
The All India Gaming Federation (AIGF), the E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS) are the three major organisations in the country's skill gaming industry.
Prominent businesses and investors like OnePlus, InMobi, Nazara Technologies, Gameskraft, Peak XV (formerly Sequoia India), and Reliance Jio are among the members of IAMAI's Digital Gaming Committee, while the Mobile Premier League (MPL), Gameskraft, Deltatech Gaming, Head Digital Works (A23), and WinZO are among the members of AIGF.
On this, Rajeev Chandrasekhar, Honourable Minister of State, Meity, emphasised, the importance of the Online Gaming industry, saying, “I would like to reiterate and reaffirm that the Government of India considers online gaming as an important part of our USD 1 Trillion Digital Economy Goal.”
He added, “Our approach is to catalyse the startup and innovation ecosystem while ensuring the safety of gamers including children, and unambiguously prohibiting games promoting wagering, addiction and user harm.”
“We at IAMAI are happy to have curated the Voluntary Code of Ethics for Online Gaming Intermediaries, which has been signed by four industry bodies representing the digital gaming sector in India. This is a progressive step towards building a transparent and accountable gaming ecosystem with a focus on consumer protection,” said Dr. Subho Ray, President, IAMAI.
Mr. Joy Bhattacharjya, Director General, FIFS, said, “With close to 50 crore actively engaged users, India's gaming industry is a sunrise sector. The 'Code of Ethics' for Online Gaming intermediaries reinforces the industry's commitment towards growing the sector, contributing to the Prime Minister's vision of becoming a USD 1 trillion Digital economy and creating a safe, trusted and accountable gaming ecosystem."
Anuraag Saxena, CEO, EGF, said, “The online skill gaming industry is making great strides in contributing to India’s digital economy. Seeing the sector proliferating with new-age technologies, trends, and consumer and investor interests driving innovation is encouraging. The year 2023 has been eventful for the sector, and the immediate imperative is the implementation of proposed IT rules by establishing the SRBs with regulatory oversight. We believe that these rules will play a crucial role in creating a safe and transparent gaming ecosystem while harnessing the potential of the sector for greater economic benefits.”
Roland Landers, CEO, AIGF, said, “India’s online gaming industry has grown phenomenally so far and the next level of growth is highly dependent on a well-defined regulatory framework. We are committed to building a responsible and ethical industry which puts a strong focus on educating players about gaming responsibly, implementing self-checks and self-exclusion among other things.”
All signatories have committed to making their "best efforts" to embrace and implement the practices outlined in the code. The practices being:
Limiting user control
By mandating online gaming intermediaries to offer alternatives for establishing time or expenditure limitations, the voluntary rule places an emphasis on user empowerment. A self-exclusion function is included, allowing users to choose when to stop accessing the game. To spot and assist gamers exhibiting at-risk behaviour, monitoring tools will be used.
Age-Gating procedures
Games with real money awards will only be available to players who are at least 18 years old. All platforms will have "18 or 18+ only" signage openly displaying age limits. When accounts belonging to minors are found, access to them will be blocked.
Anti-Deception procedures
Real-money gaming intermediaries pledge to uphold fair play. They won't support competitions in which the website uses bots or other automated techniques to discriminate against users. Third-party certification, blocking of bot-generating software, and regular audits ensure compliance with laws.
Accountability for finances
The intermediaries promise to only transact through approved digital channels; they will not accept cash, bitcoin, or unapproved payment methods. Controls, Know Your Customer (KYC) procedures and anti-money laundering measures are required. It is necessary to make open disclosures about costs, rewards, deposit security, and collaborations with payment organisations.
Promoting accountability
Signatories pledge to practice ethical advertising, making sure that advertisements for games that require downloads don't target children, distort the odds of winning, or break any other advertising regulations. Claims about total prize money must be truthful, verifiable and not suggest guaranteed winnings. Advertisements will not present gaming as a source of income, a business venture, or a way to solve problems.
Data protection and storing
Intermediaries will follow cybersecurity and data protection legislation. They pledge to keep law enforcement's "high priority channel" open and enable government agencies to address reported violations promptly.
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