Regulations required for all online skill games, not just fantasy: Niti Aayog


The government think tank Niti Aayog rececommends setting up of a single self-regulatory body to standardize regulations governing the entire skill gaming industry. In a draft report titled ‘Guiding Principles for the Uniform National-Level Regulation of Online Fantasy Sports Platforms in India’, Niti Aayog has suggested setting up a single self-regulatory body for fantasy sports. The think tank has invited stakeholder comments on the draft by January 18, 2021.

The key observations and recommendations by skill game representatives to Niti Aayog’s report include:

* The online skill games industry is, and will continue to generate substantial growth in employment, tax revenues, and investment. This industry has been repeatedly exposed to regulatory uncertainties in various states despite clear protection under Article 19(1)(g) of the Constitution of India, as has been cited in the guidelines. Constitutional protection is equally available to all constituents of the broader Skill Gaming Industry.

* The current guidelines issued by the Niti Aayog cover fantasy games, which is a small part of a much larger online skill gaming industry. Given that each state will need to incorporate/agree with the idea of a « safe harbor », it will be impossible to single out one online skill game whilst leaving the vast majority of the industry outside the ambit of such guidelines. Niti Aayog should broaden its consultation that encompasses all parts of the skill gaming industry and come out with a document that would address the industry’s concerns as a whole.

* NITI Aayog should propose not only to recognize self-regulatory industry bodies that represent operators that cover 66% of any specific type of gamers (like fantasy gamers or online rummy gamers) but also ensure that such industry bodies include the top 3 to 4 online operators in that game/segment. An inclusive approach will assist in establishing the credibility of the self-regulatory regime will ensure that competition and innovation can thrive within the limits of the law.

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