India inching closer towards online gaming regulation
News agencies in India have reported that the Indian government is poised to address the complexities surrounding online gaming regulation with the formation of a Group of Ministers (GoM). Scheduled to hold its inaugural meeting on December 15, the GoM aims to deliberate on key issues related to the regulation of online gaming. The initiative comes after several informal meetings and is expected to set the tone for the comprehensive regulatory framework, focusing on enforcement, taxation, and self-regulation.
Composition and Focus of the GoM
Prominent figures from the government, including Home Minister Amit Shah, Finance Minister Nirmala Sitharaman, IT Minister Ashwini Vaishnaw, and Information and Broadcasting Minister Anurag Thakur, are likely to be part of the proposed GoM. The primary focus of the meetings will be on addressing concerns related to the effectiveness of existing gaming rules, especially in cases where companies operate from outside India. The GoM will also explore strategies to combat money laundering and illegal activities by certain gaming companies.
Industry Collaboration and Self-Regulatory Organization (SRO)
The government’s efforts extend to fostering collaboration with industry stakeholders and establishing a Self-Regulatory Organization (SRO) for the online gaming sector. Discussions are ongoing with organizations such as the All India Gaming Federation (AIGF), Esports Players Welfare Association (EPWA), and others. Industry proposals for responsible gaming include measures such as automatic account blocking for reaching certain thresholds, preventing violations of the Foreign Exchange Management Act (FEMA), and stringent reporting requirements. The online gaming industry is currently navigating challenges, including concerns related to Goods and Services Tax (GST), with amendments requiring overseas gaming companies to register in India from October 1.
As the online gaming landscape in India undergoes significant scrutiny, the GoM’s efforts aim to strike a balance between regulation, taxation, and responsible gaming practices, setting the stage for a more structured and accountable industry. The meetings are particularly timely, given the ongoing legal battles and challenges faced by online gaming companies in the country.
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