Budget 2023: Online gaming definition broad and vague, says IAMAI

Members of the IAMAI – the lobby of digital services companies – have suggested the government reconsider the definition of gaming, regulated entities, and the scope of self-regulatory bodies (SRBs) proposed under the policy on online gaming.

“The members of the association feel that the definition of online gaming is too broad and vague and would unnecessarily bring under regulation and expensive compliance a set of firms that do not need to be regulated or need to be very lightly regulated,” the Internet and Mobile Association of India (IAMAI) said on Thursday.

As per IAMAI’s website, major online gaming companies including Dream11, Mobile Premier League (MPL), Nazara Technologies, and Unity Technologies are members of the body.

The Ministry of Electronics and Information Technology (MeitY) on January 2 released draft amendments to the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, in relation to online gaming. The draft defines an online game as any 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.

IAMAI members have submitted their feedback to the ministry stating that the scoping of the rules has been done poorly and certain aspects need a major re-look.

The draft rules propose a self-regulatory body to certify what is permitted as an ‘online game’ in India. They also prescribe a registration mark on all online games registered by the SRB. IAMAI has previously announced its intent to form a body for online gaming saying that it was “best suited” to form the proposed Self-Regulatory Organisation.

“Certain provisions of the draft also seem to imply that service providers or partners that advertise, publish or host online games will have to comply with the Rules by verifying each game with the self-regulatory body (SRB) on an ongoing basis making it impractical. Intermediaries must not be obligated to ascertain and verify the registration of online games,” IAMAI said.

At the same time, the lobby praised the rules for providing a legal framework for the orderly development of the industry, as well as “strong consumer safety measures.” Allowing the industry to be self-regulated is also a positive development, according to IAMAI. These measures by bringing in recognition and regulatory certainty will allow for innovations and investments in the industry, the body said.

It added that the industry has asked for a retired Judge as a member of the SRO “since ultimately the role of the SRB would be adjudication and the industry has asked for common principles by which gaming SRBs are governed.”