The Battle Over Self-Regulation in India's Online Gaming Industry

Online Gaming Platforms Oppose SRO Backed by IAMAI

The online gaming industry has seen tremendous growth in recent years, with millions of users logging in to play games on various platforms. However, as the industry continues to grow, so do the challenges it faces, including the need for proper regulation.

The Indian government had informed gaming companies in April that they had three months to submit proposals for their self-regulatory organizations (SROs). Failing that, the government would initiate its process of establishing a regulator for the sector.

In this context, major online gaming companies such as Dream11, Games24x7, Mobile Premier League (MPL), and Zupee have come out in opposition to the self-regulatory organization (SRO) backed by the Internet and Mobile Association of India (IAMAI). According to sources, the interests of the industry grouping are not aligned with those of the online gaming platforms.

The rebuttal to IAMAI's proposal by gaming companies comes at a time when the industry body is witnessing sharp rebukes from Indian startups for being in favor of Big Tech interests. Founders are demanding a change in leadership at IAMAI, which they contend has become a "mouthpiece of Big Tech," while failing to represent the interests of small and medium-sized enterprises.

In February, online gaming companies had written to the Ministry of Electronics and Information Technology (MeitY) distancing themselves from IAMAI's views on the draft online gaming rules. The gaming companies had already distanced themselves from the Internet body over its comments to the MeitY that the draft rule 'was right on intent but poor on scoping.

' As per the online gaming rules, the SRO will have to be set up as a legal entity under the Section 8 of the Companies Act. Its members will include an individual having online gaming industry experience; another person with experience in promoting the interests of online gaming users; an educationist; a mental health expert; an information and communication technology expert; a current or former member of an organization dealing with the protection of child rights; a public policy, law enforcement, or a representative from a consumer rights organization.

The opposition by major online gaming platforms to the SRO backed by IAMAI has highlighted the industry's struggle to establish effective self-regulation. The online gaming industry's rapid growth in India has resulted in several challenges, including concerns over underage gambling, data privacy, and addiction.

While some gaming companies are working with specialized industry lobby groups to create a proposal for SROs, others have yet to take any action. The Indian government's decision to establish a regulator for the sector could help address the challenges facing the industry.

In conclusion, the opposition by major online gaming platforms to the SRO backed by IAMAI highlights the need for effective self-regulation in the online gaming industry. As the industry continues to grow, it is crucial to establish rules and standards to promote order and ensure the protection of consumers.