The Online Gaming (Regulation) Bill, 2022: Hits And Misses – Gaming

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The Online Gaming (Regulation) Bill, 2022
(“Bill”) was launched within the Lok
Sabha on April 1, 2022 to ascertain an efficient regime for
regulating on-line gaming business to forestall fraud and misuse.
Acknowledging the results of addictive options of on-line gaming
and noting the profound impression of the gaming business on the
nation, the Bill requires establishment of a regulatory fee
to control the web gaming business.

Highlights of the Bill

The definition of “Online Gaming” beneath the Bill
consists of any sport performed on the digital units equivalent to private
computer systems, cellphones, tablets, and different units. Since the
definition doesn’t differentiate between ‘sport of
talent’ and ‘sport of likelihood’, it’s obvious that
the Bill goals to control all types of video games performed on such
digital units.

The Bill encompasses structure of a regulatory fee
specifically, Online Gaming Commission
(“OGC”) consisting of 5 members
nominated by the Central Government, with not less than one professional every
from the sphere of regulation, cyber expertise and one individual with
expertise in regulation enforcement. The OGC can be empowered to,
inter alia, oversee the features of on-line gaming
web sites; make periodical or particular experiences on issues pertaining
to Online Gaming; counsel applicable measures to regulate and curb
unlawful Online Gaming; grant, droop and revoke licenses for
on-line gaming web sites and decide the price for license
functions and license renewals of such web sites.

The Bill proposes to ban engagement of Online Gaming
and not using a web site and a non-transferrable and non-assignable
license. Any individual working a web-based gaming server or a web-based
gaming web site with out such license is punishable with imprisonment
as much as three years together with nice. The license can be legitimate for a
time period of six years.

The license proposed to be granted beneath the Bill could also be
suspended or cancelled if the licensee breaches any of the
situations of the license or, contravenes any of the provisions of
the Bill. However, the Bill excludes its software to any individual
offering backend companies in India together with internet hosting and
upkeep companies for any worldwide gaming web site primarily based
exterior India.

Hits and Misses

The Bill attracts similarity from a personal member invoice specifically the
Sports (Online Gaming and Prevention of Fraud) Bill, 2018
(“Sports Bill”) launched within the Lok
Sabha on December 28, 2018, which has thereafter lapsed. Similar to
the Sports Bill, the Bill proposes to, inter alia,
introduce laws referring to structure of a regulatory
fee, license for on-line gaming server/ web site, overseas
direct funding and expertise collaboration in on-line gaming.
However, the Bill has not included provisions in relation to
numerous key points, together with information safety of the customers,
geographic restrictions and exclusions, and buyer grievance
mechanism. Whilst the Bill is a welcome step in regulating the
on-line gaming sector, the authorized framework envisaged beneath the Bill
doesn’t deal with among the key areas of issues within the on-line
gaming ecosystem, equivalent to a strict regulatory framework for the
conduct of the platforms within the on-line gaming sector which is
important at this juncture. Given the persistent progress of on-line
gaming market in India, it might be seen as a possibility for the
legislators to have in-depth discussions in the course of the parliamentary
classes on the Bill and analyse the uncertainty referring to
applicable guidelines on this sector. The Bill could also be additional amended
to incorporate strong provisions for shielding the pursuits of the
on-line avid gamers in addition to the stakeholders.

The content material of this text is meant to supply a normal
information to the subject material. Specialist recommendation must be sought
about your particular circumstances.

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