Imposing time limits or restrictions on gaming, such as those on playtime or spending, has proven to be ineffective across the world, said CEO of the All India Gaming Federation Roland Landers.
He was responding to reports that the Tamil Nadu government plans night ban, deposit caps to rein in online addiction. However, State government sources said that this was only being discussed and no decision has been taken.
Players may be restricted to spending ₹5,000 per day and ₹20,000 per month on gaming platforms, reports said.
Landers feels that users frequently bypass these limitations using Virtual Private Networks and other tools, rendering such regulations impractical to enforce. More importantly, blanket restrictions or bans infringe on individual rights and, as the courts have repeatedly emphasised, violate constitutional protections.
While it’s commendable that the State is looking to implement a regulatory framework, it’s important to recognise that India’s gaming ecosystem has its own unique challenges. Wholesale adoption of legislation from other countries, without considering local nuances, may not fully address the complexities of the Indian market.
Instead, a more customised approach that includes best practices from other jurisdictions, but is tailored to India’s specific needs, would likely be more effective, he said.
Across India, there are 450 million gamers; over 500 companies and 3 unicorns, he added.
“Rather than bans or strict time limits, the focus should be on creating a safe and secure environment where users are empowered to make informed choices. We are committed to working with authorities to develop a framework that fosters innovation, ensures user safety, and provides a well-regulated gaming environment for all,” he said.
The Tamil Nadu government in the past has taken strong measures to regulate online gaming. A five-member committee was constituted under former Justice K Chandru to assess the adverse effects of online gaming with stakes and advise on the possibility of introducing a new law to regulate online gambling.
Based on the committee’s recommendations, the State Government enacted the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022. The Tamil Nadu Online Gaming Authority was created in August 2023 to ensure that all the online games are properly regulated.
The Authority may also advise the State Government on matters pertaining to online gaming. It has powers as are vested in a civil court and can demand any information as deemed necessary from online game providers.
The online gaming segment in India has seen remarkable growth with immense economic potential. The country boasts a substantial gaming community, comprising 42.5 crore gamers, the second largest globally after China, says a report by EY.
From FY20 to FY23, the online gaming segment in India experienced a notable CAGR of 28 per cent culminating in a market size of ₹16,428 crore in FY23. Industry estimates suggest it will reach ₹33,243 crore in FY28, showing a 15 per cent CAGR.
The segment has attracted consistent investments totalling ₹22,931 crore between FY20 and FY24 YTD from both domestic and foreign sources. Furthermore, it directly and indirectly employs around one lakh individuals, with the prospect of expanding to over 2 lakh job job opportunities by 2025, the report said.