Over the past few years, we have seen a massive shift in the way that people entertain themselves. The restrictions which were brought about in the previous two years, which prevented certain social gatherings, resulted in a rise in viewing hours and mobile device screen time. These increased viewing hours resulted in a massive increase in online gaming. The average device viewing time increased by 65% during the restrictions. It is estimated that 43 million people in India alone spent time utilizing online and virtual gaming platforms.
The online gaming market saw an increase of Rs 60 billion (just under 800 million US dollars) in 2021. The drastic increase in financial income comes as online fantasy sports and online gambling within India face ongoing issues with the legality of these activities being banned by the state government.
Types of Online Gaming
E-Sports
E-Sports are video games, usually high competitive ones, that are played on consoles, personal computers, and high-end mobile devices. Such games can be played offline or online. Online e-sports tournaments can draw in thousands of online viewers and have significant cash prizes.
Fantasy Sports
Fantasy sports platforms allow users to choose their favorite sports teams/players and win points according to how well the players perform in real life.
Online Casual Games
Online casual games could be skill-based, however, the outcome can be based on mental, physical skill, luck, or randomized chance such as rolling a dice. Online casual games can be considered gambling if users wager anything of monetary value.
Need for Regulations in India
The online gaming industry within India has a lack of regulatory oversight and falls into a ‘grey area.’ India currently has no comprehensive legislation with regards to the legality of online gaming or boundaries that specify applicable tax rates within the betting and gambling industry.
Online gaming in India is allowed within most parts of the country. However, different states have their own legislation with regards to whether online gaming is permitted. Well-regulated online gaming has many advantages, such as economic growth and additional benefits.
- The online gaming industry in India is expected to generate an excess of IDR 29000 crore (over USD 38,7 million) by the end of 2025.
- The industry is expected to create 15000 jobs.
- Income Tax from the industry can attract significant global investments.
The benefits of the online gaming industry is thanks to India’s massive population of 65.7 million online users.
If the Indian government wants to cash in on the potential benefits of the online gaming industry, there is a need for urgent regulation. The government needs to ensure that online users make use of trustworthy and reputable sites such as Netbet Casino, Wildz Casino, and other sites that make online gambling in India a safe practice for all Indian users.
A list of suitable changes the Indian government should consider;
- KYC norms need to be strengthened.
- Education of users regarding potential risks, such as identifying cheating, addiction and abuse.
- Create a robust handling mechanism for user grievances.
The best way to implement the suggested regulations would be to create a gaming authority within the central government. The gaming authority should be responsible for the online gaming industry and perform operations such as preventing societal issues, operations monitoring, classifying games of skill and chance, consumer protection, and combatting illegal betting and crime.
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