The Indian government is ready to introduce a single regulatory framework for the online gaming industry, which aims to replace the current fragmented state-level regulations. According to the report, this framework under the supervision of the Home Ministry aims to provide legal clarity, attract foreign investment, and curb illegal activities associated with offshore gaming entities.
The regulatory framework is expected to provide clarity over gaming and gambling, which is the major issue that currently persists in the Indian gaming industry. There is ongoing debate on it despite the Supreme Court’s ruling that online gaming is a game of skill, whereas gambling is a game of chance.
The ambiguity has become a major hurdle in industry growth. However, with the new regulatory framework, experts believe that a unified framework would prevent regulatory framework.
Amid the blurred picture of regulations, foreign investment has already dropped significantly with industry executives citing a 90% decline over the past 2 years. Several states, including Karnataka, Maharashtra, and Tamil Nadu, have approved conflicting laws.
A senior policy executive from a leading gaming company affirmed that these discrepancies have caused “regulatory spillage”. This uncertainty is deterring investment and stalling industry growth.
The online gaming sector presents immense economic potential, which generated over $2.4 billion in revenue in FY24. Industry leaders, including Roland Landers of the All India Gaming Federation (AIGF), support a central regulatory body to streamline governance.
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