In recent years, the online gaming industry has grown exponentially on a global scale, including in India. However, the surge in its popularity has raised concerns about responsible gaming, consumer protection, and regulatory oversight.

In India, there has been a proactive approach towards addressing the issue of online gaming through the implementation of self-regulatory organizations (SROs). Despite this, there seems to be a lack of clarity regarding what an SRO is and how it operates.

What are gaming SROs?

Self-Regulatory Organizations (SROs) are non-profit entities established by members of a particular industry to oversee and regulate their sector. When applied to the realm of online gaming, these SROs ensure that online gaming firms adhere to the stipulations and regulations laid out by governmental bodies.

India’s Push toward gaming regulation

India’s Ministry of Electronics and Information Technology (MeitY) recently invited proposals for SROs, which are autonomous bodies that collaborate with regulatory authorities to establish and enforce industry rules and standards. The primary goal of SROs is to promote responsible gaming practices, ensure consumer protection, and foster a safe and transparent gaming environment.

In India, SROs for online gaming will differentiate real money games from non-gambling games to clearly distinguish them. The bodies will have a five-member board of directors structure, which includes government-approved representatives. This includes a retired Supreme Court judge, a cybersecurity expert, a psychologist, and others.

Gaming Regulatory Framework in India

The gaming industry in India is experiencing rapid growth and popularity in online gaming, which has raised concerns about the potential risks associated with real-money games. These concerns include gaming addiction, child protection, financial fraud, and more. To address these concerns, the Indian government is introducing regulatory frameworks in the form of SROs. This will help distinguish between real-money games and certified ones, creating a safer environment for players.

Gaming SRO: Roles and Responsibilities

In the absence of a unified regulatory body, industry-specific self-regulation becomes crucial. This is where SROs play a vital role, taking on multiple responsibilities. Here are some of the important ones:

• Accreditation of online gaming companies: One of the key tasks of gaming SROs is to grant certification to online gaming firms that fulfil the necessary standards.
• Addressing grievances: Gaming SROs are tasked with probing into complaints about unfair practices by online gaming firms.
• Enforcing penalties: Gaming SROs can levy penalties on firms breaching established rules.
• Advocating for responsible gaming: A crucial role of gaming SROs is encouraging and fostering responsible gaming habits.

Benefits of a Gaming SRO

Implementing Self-Regulatory Organisations for online gaming in India can bring numerous benefits to the industry, stakeholders, and gamers alike. By enforcing proper regulations, these gaming SROs can promote transparency and accountability, reducing illegal activities in the industry. Comprehensive regulation will enable the Indian gaming industry to compete on a global level, while also prioritizing consumer protection to safeguard vulnerable groups, such as children. Establishing a credible regulatory body will also encourage foreign and domestic investments. Ultimately, SROs can contribute to the growth and development of the gaming industry in India, including job creation and economic benefits.

• Gaming SROs enforcing the proper regulations can help create a more transparent and accountable gaming ecosystem in India, which helps reduce illegal activities in the industry.
• A comprehensive regulation will help the Indian gaming industry to compete on a global level.
• Consumer protection is at the forefront since it safeguards users (especially vulnerable groups like children) from potentially being harmed by online games.
• Building up a regulatory body with credibility will encourage foreign and domestic investments as well.
• SROs can contribute to the overall growth and development of the gaming industry in India. This includes job creation, economic benefits, and more.

Case Studies: Existing Gaming Regulatory Bodies

Many countries worldwide have created regulatory agencies specifically for overseeing the rapidly growing gaming industry. Some of these agencies have existed for a considerable time, and it’s worth examining how they compare to India’s recent efforts in this area.

• The Entertainment Software Rating Board (ESRB) is a regulatory body in the US. It is widely recognized for rating video games and providing age-appropriate content guidance to consumers. The ESRB rates content based on violence, language, and sexual themes. It successfully made game publishers/distributors feature their ratings on the game packages to inform consumers and parents about the game’s suitable age groups.
• The Interactive Software Federation of Europe (ISFE) has a similar role as India’s Gaming SROs in the European market. Although it does not function as an SRO, the IFSE promotes regulation and works with regulatory agencies to establish industry standards. The International Age Rating Coalition (IARC) is another regional organisation that functions like the ESRB. Its ratings are also standard in other regions, such as Australia and the Americas.
• The video game industry in South Korea is massive, making it vital for the government to regulate it properly. They established the Korea Association of Game Industry (K-GAMES) to achieve this. This agency plays a crucial role in promoting the gaming sector, supporting local game companies, ensuring fair competition in the market, and facilitating communication between the government and customers.
• The Japan Online Games Association (JOGA) serves as a regulatory body in Japan for the online gaming industry. Similar to the Indian SROs, JOGA works to promote and advance the Japanese online gaming sector. Additionally, JOGA collaborates with the government to ensure that industry companies comply with established standards and regulations.
• China is the world’s second-largest gaming market, but it has the most stringent regulations in the industry. The National Press and Publication Administration (NPPA) operates under the government’s direct authority and is responsible for approving and censoring video games. The NPPA also enforces strict content regulations to ensure that video games align with Chinese values and regulations.

The Future of Gaming SROs

The future of Self-Regulatory Organisations (SROs) for gaming in India looks promising. The country’s approach to gaming regulation is innovative in some ways. By involving established industry players, promoting transparency, and protecting consumers, it seems like a solid plan. SROs may even enhance the online gaming experience for users. Several proposals have been submitted, indicating a bright future for gaming in India.

It’s evident that the agencies tasked with regulating the market will face numerous challenges. One of these challenges will be ensuring that the SROs are independent and effective. Additionally, resolving conflicts of interest and keeping up with the rapidly evolving market will be difficult. It’s important for regulatory bodies to strike a balance, as becoming overly zealous can have a negative impact on the consumer base they aim to protect. However, with a well-defined board structure, direction, and government collaboration, SROs could help India stay ahead of the game over time.

Way Forward

The introduction of SROs in the gaming industry is a significant event that marks progress in India’s gaming landscape. The goal of improving regulations, promoting responsible gaming practices, and safeguarding consumers is an admirable step towards a better future for the entire industry and gamers. As SROs commence their operations, it’s essential to continuously evaluate, adapt, and collaborate between industry players and regulatory bodies to realize the full potential of self-regulation in the Indian gaming sector. By striking a balance between innovation, user protection, and industry growth, SROs can play a pivotal role in shaping a responsible and thriving gaming industry in India.