India’s Ministry of Electronics and IT (MeitY) has posted for review draft regulations for online gaming. Among its goals are reducing black market gambling.
One of the most impactful takeaways is that online operators must register games with regulators and they may only offer approved games. It also emphasizes responsible gaming and holding operators to doing due diligence on their most vulnerable patrons. This includes verifying the source of funds and know-your-customer procedures.
The regulations do not include online sports betting.
Minister Rajeev Chandrasekhar told reporters that nearly half of online players are women, which he said was a strong reason for writing regulations “to keep the gaming ecosystem safe.” At the same time the government will support start-ups and innovation in the burgeoning industry, he said.
The Ministry is now taking public comments on the draft. Some changes from that input could be applied to the final draft, said Chandrasekhar.
Some financial experts estimate that India’s online gaming sector could generate $5 billion by 2025. It grew 38 percent from 2017-2020 according to government statistics, compared to 8 percent for the same period in China and 10 percent in the United States.
