Sunday, 4 December 2022

PMO decides all real-money online games will be regulated by the government: What this means

Indian Government is reportedly mulling regulations for real-money online games. Both skill-based and chance-based games will come under this. As per Reuters, Prime Minister’s Office has decided to classify all online games as one activity or service with no distinction between skill and chance. In case you are wondering what all this is about, here’s a rundown of what happened so far:

Real-money online games regulations: The story so far

Online gambling

In August of this year, an Indian panel responsible for real-money online games regulation proposed a new body to discern between skill-based and chance-based games. 

The skill games would then be required to follow federal rules like the registration process, know-your-customer verification, and grievance redressal solution. 

Meanwhile, chance-based games (similar to gambling) would fall under the gambit of individual state governments. Each state would be free to regulate them as they deem fit.

However, on October 26, a PMO official raised an objection to this and sought supervisory control over all games, skill-based or otherwise. Reuters learned this from the confidential minutes of the meeting it got hold of.

The meeting minutes apparently underline the murky legality of this matter and had concluded how a differentiation between skill-based and chance-based games for the matter at hand is difficult.

Online gaming

To give you an example, Supreme Court of India considers the card game rummy as skill-based and legal, but many state high courts don’t hold the same view.

Finally, the regulation aims to bring in ‘de-addiction measures’ such as periodic warnings and limits on usage and finances.

In time, we will know how it all pans out.

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