What would change in gaming industry?

The Union Cabinet has cleared the Promotion and regulation of online gaming Bill.

The Union Cabinet has cleared the Promotion and regulation of online gaming Bill, on August 19, Tuesday. The bill puts a ban on online gaming involving real money including its ads, and imposes imprisonment or fine, or both, for those offering or advertising them. The bill marks a clear distinction between these games and eSports or online social games, according to PTI. The bill on the other hand calls for promotion of eSports and online social games, the source told PTI. It also acknowledges that official recognition of eSports will align India with global competitive gaming landscape, spur innovation, create opportunities for Indian startup ecosystem and make the country a global magnate for game development.

What penalties does the bill impose?

The Bill proposes that any person offering online money gaming service in violation of the stipulated provisions will face imprisonment of up to three years or a fine that may extend to Rs 1 crore, or both. The provisions also stipulate imprisonment of up to two years and or a fine of up to Rs 50 lakh, or both, for those indulging in advertisements in contravention of rules. Also, those engaging in any transaction or authorisation of funds will be liable for up to three years imprisonment, or a fine up to Rs 1 crore or both, according to the source.

Repeat offences for violation related to online money gaming attracts higher stringent jail term (3-5 years) as well as fine.

Who are exempted from punishment?

The Bill, however, does not criminalise anyone playing online money games, to avoid any harassment. The idea is to treat them as victims, rather than perpetrators of crime, the source said, adding that the Bill cracks down on those promoting and abetting it. It prohibits banks, financial institutions from processing or transferring funds related to real-money online games. PTI said that the Bill aims to regulate online gaming by promoting online social games and eSport, while prohibiting online money gaming in larger public interest.

What consequences does real money online gaming have?

They pointed out that although the gaming landscape in India has seen explosive growth, the regulatory environment has remained fragmented and grey. At the same time there have been rising concerns around addictive nature of online games, especially monetary incentives, as well as mental health ramifications. Moreover, there have been instances of individuals falling victim to financial losses on account of online money gaming, resulting in extreme outcomes like depression, even suicide.

Online money gaming has also been leveraged as channels to facilitate money laundering, and other illicit activities. The Cabinet is expected to table the bill in Parliament on Wednesday.

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What is the online gaming bill?

The online gaming bill, passed by Union Cabinet, regulates online gaming by promoting online social games and eSport, but putting a ban on online money gaming.

What are the consequences of the online gaming bill on gaming industry?

The Bill seeks to establish a statutory regulatory authority for oversight and accountability. It calls for registration, compliant mechanism for online gaming platforms. The regulatory authority will have the power to determine whether or not a particular online game is an online money game, after making due enquiries.

What is the meaning of online money game?

According to the Bill, it is an “online game, irrespective of whether such game is based on skill, chance or both, played by a user by paying fees, depositing money or other stakes, in expectation of winning in return of money or other stake” but specifies that it does not include eSport.

Summary

• The Union Cabinet has cleared the online money gaming to regulate online social games and eSports but do away with online money gaming.
• The Bill aims to promote eSports and online social games but put penalties, fines and punishments on those entities promoting and advertising online money games.
• offering online money gaming service is a violatin and will be met with consequences.
• The Bill prevents banks, financial institutions from processing or transferring funds related to real-money online games.

(With inputs from PTI)