New Delhi With several states including Andhra Pradesh, Odisha and Telangana passing laws to ban online gaming, it is important that a policy framework is developed to regulate it. E-Gaming Federation CEO Sameer Barde said in an interview, 15,000 crore industry, which is growing at the rate of 35% to ensure smooth operation. The non-profit organization was established for the development and self-regulation of the online gaming industry in India. Gaming sites MPL and Games24X7 as well as companies like Paytm are members of the federation. Barde said the need of the hour is to enact a comprehensive law to protect industry players from fly-by-night operators. Edited excerpt:
How much does an average Indian spend on e-gaming annually?
We probably have one of the largest user bases for gaming. But most of them are playing for free so they are not really generating revenue. But the potential is huge. The growth rate is over 35% CAGR (Compound Annual Growth Rate), which is the fastest compared to any entertainment business, even OTT. And while we see OTT growth starting to slow down, gaming has a long way to go.
Which categories are considered problematic?
There are broadly three categories. Casual games like Candy Crush, Ludo and Gardenscape can be played by everyone from 3 years old to 90 years old. This segment is largely free to play or has advertising-based revenue or operates on a freemium model.
The other end of the spectrum is eSports, now an Asian Games sport in which players can win medals. Fantasy sports allow players to form teams of real players from a given sport.
Are fantasy sports considered gambling?
There is much talk of it being close to gambling. State governments have geared up. The Supreme Court (SC) has classified them as a game of skill and a game of chance. Essentially, any game where gamer skill affects the final outcome of a game far more than the element of luck or chance is said to be a game of skill. And any game where the player’s skill has little effect on the outcome is considered a game of chance. It is considered gambling and is therefore illegal. However, the SC holds that in any game, there is an element of chance. This jurisprudence goes back 70 years and establishes that games of skill are legal, can be played for money, and have added protections under Article 19 of the Constitution.
Have some states banned these games?
Yes. Now, in some of the cases where the industry has litigated, the High Courts in those states, such as Kerala, Karnataka, Tamil Nadu, have categorically held that the ban is illegal, and reversed the restrictions. Karnataka and Tamil Nadu challenged the High Court’s decision in the Supreme Court. The matter is yet to be heard.
Aren’t players also in danger of becoming addicted to the game of skill?
Yes there is. There is a small percentage of players who get deluded and may be playing for a lot of money. And of course, these players should have protection so that they can play more responsibly. But can you do that by banning these games? In today’s era, if a state bans these sports, their ability to enforce that ban is nil. Everyone knows how to use a VPN. So how are you going to implement it? Basically, what happens when you ban something is that legitimate players move out leaving space for nighttime flight operators and illegitimate players take over.