Regulating online gaming

(MainsGS2:Government policies and interventions for development in various sectors and issues arising out of their design and implementation.)

Context:

• The Ministry of Electronics and Information Technology (MeitY) has released draft amendments in relation to online gaming. 
• The idea is to ensure that online games are in conformity with Indian laws and to safeguard users against potential harm.

Proposed changes:

• The proposals are aimed at safeguarding the interests of users by introducing set procedures and norms for verification and user engagement.
• More importantly, the draft proposal defines what constitutes an ‘online game’. It is “a game that is offered on the internet and is accessible by a user through a computer resource if he makes a deposit with the expectation of earning winnings”. 
• ‘Winning’ constitutes any prize, in cash or kind, intended to be given to the participant “on the performance of the user and in accordance with the rules of such online games”.
• This addresses the discourse in the sector about the definitions of a ‘game of skill’ and ‘game of chance’ as the term ‘game of skill’ had been used in the Public Gambling Act (1867) but had not been defined.

Ensure greater transparency:

• The game operators would have to verify users on the platform and provide them with the terms of services.
• For the monetary aspect of it, operators would have to inform the user about the policy related to withdrawal or refund of their deposit, measures taken for its protection, the manner and distribution of winnings and the fees and other charges to be paid by the user.
• They would also have to be informed about the risk of potential financial loss and addiction associated with the game.
• The self-regulating bodies’ framework must also include safeguards to protect children.
• Addiction is to be combated using repeated warning messages should the user exceed a reasonable duration while playing a certain game.

Responsibilities of platforms:

• Before hosting or publishing a game, the platform would have to verify it from the self-regulatory body it is associated with and required to carry a registration mark on all its recognised online games.
• The platform is expected to appoint a key management personnel or senior employee as its Chief Compliance Officer who would be entrusted with coordinating with law enforcement agencies to ensure compliance with their orders or requisitions.
• In addition to this, the platforms are also expected to additionally appoint a ‘Nodal Contact Person’ to facilitate the necessary coordination at any point of the day.
• Further, it must have in place an appropriate mechanism for receipt and resolution of grievances.

Concerns of companies:

• Despite appreciating the government’s move to introduce these new rules, some experts are concerned about certain discrepancies in the new initiative.
• The rules still bucket all gaming intermediaries into a broad category irrespective of size or risk and require similar compliances, including the need to have India based officers.
• This can disproportionately burden young start-ups, and make it difficult for global players to start their services in India.

Countries regulating online gaming:

• China has placed strict limits on the time young people may spend playing online games. Online gaming in the country is now only available to people younger than 18 from 8 p.m. to 9 p.m. on Fridays, Saturdays, Sundays and public holidays.
• In the U.S,Internet casino gaming remains illegal in every state that doesn’t explicitly legalize the games.
• Germany’s “Youth Protection” laws aimed at violent games pushed developers to replace realistic red blood with a green version.
• Australia has sought to ban games for including depictions of everything from assault to marijuana use.