Indian Video Game Industry Appeals to the Government to Distinguish Between Video Games and Gambling Apps With New Regulations
The Indian video games and esports industry has banded together to appeal the government to have a regulatory distinction between video games and real money games. They are also asking for a stakeholder meeting with the Ministry of Electronics and Information Technology (MeitY).
Over 40 companies from the Indian video games and esports industry signed a representation letter to the government. In addition to the representation letter, the industry contains a comprehensive 27-page video games-focused policy formal submission that should be in line with global best practices.
Video games are not Real-Money Games, and they don’t involve gambling
“Video games” and “online games played for stakes” are currently combined into the same regulatory category by MeitY. Online games do not involve staking money, are played for entertainment and recreation purposes. They are categorized as “video games” and the industry responsible behind it is known as the “games industry” or “video games industry.”
Meanwhile, real money games (RMGs) and fantasy sports are governed by separate online gambling legislation globally. The submission clarified that the industry that develops and publishes these types of games is called the “iGaming industry.”
The Indian video games industry is asking the government to create separate regulations for video games and real money games. They believe that the industry will grow, and it will protect gamers from the ill effects of real money games involving gambling. The video games industry is valued globally at $184 billion in 2022. This excludes the revenue from real money games.
Video game regulation that is in line with global standards
The video games industry is also requesting the government to regulate video games through an India-specific age and content rating mechanism, like European Union’s PEGI and North America’s ESRB.
The more than 40 Indian companies in the video games and esports industry have requested the government to create a robust framework that can address issues such as addiction, in-game purchases, and age-inappropriate content. They also want this framework to be in alignment with global standards such as COPPA in the USA and GDPR in the EU. These companies include Ludo King maker Gametion, Raji: An Ancient Epic Developer Nodding Heads Games, FAU-G developer Ncore, India’s biggest streaming platforms Loco and Rooter and MaskGun creator SuperGaming, among others.