India's booming gaming industry calls for ethical play and robust regulation

With India's online gaming community exploding to a staggering 442 million, surpassing even China, the need for ethical gaming practices and strong self-regulation has never been more critical. Responding to this urgent need, Grant Thornton Bharat and the E-Gaming Federation (EGF) have joined forces to release a comprehensive report titled "Guardians of Safe Play: Ethical Gaming for Vibrant Bharat."

Unveiled by a panel of experts including Prof. (Dr) G.S. Bajpai, Vice Chancellor of National Law University, Delhi, and Shri Priyank Kanoongo, Chairperson of the National Commission for Protection of Child Rights, the report serves as a call to action for the burgeoning industry. It advocates for a robust Code of Conduct (CoC) that sets clear ethical standards, ensuring transparency and accountability across the gaming ecosystem.

"The report highlights the importance of responsible play and consumer protection in this rapidly changing landscape. It advocates for fair play, transparency, and the safeguarding of mental well-being. Central to this is a robust code of conduct that ensures all aspects of the gaming ecosystem adhere to high ethical standards. By voluntarily undergoing rigorous audits and embracing self-regulation, stakeholders demonstrate their commitment to integrity and trust within the gaming community. Together, we can create a vibrant digital environment that upholds the highest standards of integrity and inclusivity, benefiting players of all ages.” stated Shalabh Saxena, Partner at Grant Thornton Bharat, emphasising the need for ethical conduct.

The report goes beyond just ethical guidelines, advocating for third-party certification as a key element in maintaining high standards and fostering self-regulation. It tackles critical risks faced by the industry, including cyber threats, regulatory uncertainties, and financial vulnerabilities. By offering best practices to mitigate these challenges, the report lays a roadmap for sustainable growth and enhanced player protection.

"Trust is the cornerstone of our industry. As India's gaming industry experiences exponential growth, we must prioritise player safety and responsible gaming practices. This report provides a roadmap for the industry to foster trust, transparency, and sustainability. We believe our self-regulatory standard in the form of a Code of Conduct will help navigate the complexities of the online gaming industry and strike a balance between innovation, consumer protection, and the nation’s interests,” shared Anuraag Saxena, CEO of EGF, underscoring the critical role of self-regulation.

Delving into the legal landscape, the report provides a clear distinction between games of skill and chance within the Real Money Gaming (RMG) sector. It analyses the existing regulatory framework, including the Public Gambling Act and the Information Technology (Intermediary Guidelines and Digital Media Ethics Code), highlighting the need for modernised legislation that provides clear guidelines for the evolving RMG landscape.

The report concludes with a series of strategic recommendations, including:

Modernising laws to address emerging challenges like microtransactions and loot boxes.

Enhancing player protection through robust regulatory mechanisms that safeguard against cyber threats, fraud, and unfair practices.

Promoting ethical standards and responsible gaming practices across the industry.

By drawing inspiration from global regulatory models while acknowledging India's unique cultural and social context, the report envisions a vibrant and ethical gaming ecosystem for India, positioning it as a global leader in responsible gaming.

Parth Chadha, Co-Founder & CEO at STAN told Business Today, "We at Stan fully support the recent Thornton Bharat and EGF report, which highlights the importance of regulatory mechanisms to protect players from cyber threats, fraud, and other unfair practices. In the gaming sector, ensuring player protection and upholding consumer rights are the most important factors to the integrity and future growth of the gaming industry."

"We believe that gaming communities in India are the key driving factor to further bolster India’s gaming system altogether to a new extent. Gaming in India has become one of the popular sources of income for youth that was considered a mere timepass earlier.  Gaming communities foster a sense of belonging among players, enhancing social interactions, and encouraging collaboration and competition," he added.