At a time when the online gaming industry is working to propose self-regulatory organisations (SROs) to the government, online gaming companies such as Mobile Premier League (MPL), Games 24×7, etc, are pushing for neutral SROs, according to people aware of the matter. The companies want the SROs to not have any kind of pre-existing association with other digital intermediaries and not be involved in other kinds of projects.
The argument by the online gaming companies is crucial as the Internet and Mobile Association of India (IAMAI) has recently proposed them the idea of forming an SRO. However, the companies have expressed concerns over the proposal stating that they want an independent body that can align with their objective of safeguarding consumer interest. The online gaming companies do not want to take risks with any such industry-backed SRO which promotes the interests of other digital intermediaries, according to industry executives.
Queries sent to IAMAI, MPL, Games 24×7, and other gaming companies did not elicit any response.
“There are a lot of discussions going on with specialised gaming industry bodies. We will back such associations which are currently not front-ending the government with their other projects and have expertise in the gaming sector,” an executive representing an online gaming firm said on the condition of anonymity. According to the executive, the companies want the SROs to have legitimate partners which are offering their games in a responsible manner.
With regard to IAMAI, the association has also a focus on the digital gaming sector apart from other sectors like social media intermediaries, e-commerce, digital payments, healthtech, among others. The association counts online gaming members such as MPL, Nazara Technologies, Dream11, Games 24×7, etc.
Lately, some startups also accused IAMAI of favoring the big tech companies and not representing their interests.
On April 6, the Ministry of Electronics and Information Technology (MeitY) amended the IT Rules, 2021 to incorporate regulations for online gaming. The regulations are aimed at banning games involving betting or wagering as an outcome. Through the rules, the government also laid out the structure of SROs that will determine whether a real-money game is permitted to operate in the country or not.
Online real money game means an online game where a user makes a deposit in cash or kind with the expectation of earning on that deposit.
The government will initially notify three SROs. The structure of SROs will involve government-approved entities, including people with experience in online gaming, an educationist, an expert in the field of psychology, individuals dealing with protection of child rights, an individual with experience in the field of information and communication technology, and other relevant officials to be notified by the government.
The government has given the industry three months to form such SROs, otherwise, the government will get involved in such activity similar to the way it formed the Grievance Appellate Committees (GACs) to look into complaints by users against decisions of social media platforms.
Online gaming companies are in discussions with industry associations such as the Federation of Indian Fantasy Sports (FIFS), All India Gaming Federation (AIGF), and E-Gaming Federation regarding possible SRO proposals. However, these organisations will also have to tweak their structure as per the government rules by including representations from other eligible people, according to industry executives.
“The self-regulatory mechanism that did not come up for social media intermediaries from the industry, will not be the case here (for online gaming intermediaries). There is plenty of industry interest in making sure that there are SROs (for online gaming),” minister of information and electronics Rajeev Chandrasekhar had told FE when the government notified draft online gaming rules in January.
However, the government also cleared its stance that it will not allow the industry to hijack the SRO, meaning that SRO will not be dominated by the industry but include representations from the industry.