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

Introduction

 

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

Highlights of the Bill

 

The definition of “Online Gaming” underneath the Bill contains any sport performed on the digital units resembling 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 every kind 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 skilled every from the sector of regulation, cyber know-how 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 reviews on issues pertaining to Online Gaming; recommend acceptable measures to regulate and curb unlawful Online Gaming; grant, droop and revoke licenses for on-line gaming web sites and decide the charge 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 advantageous. The license can be legitimate for a time period of six years.

The license proposed to be granted underneath the Bill could also be suspended or cancelled if the licensee breaches any of the circumstances 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 outdoors 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 rules regarding structure of a regulatory fee, license for on-line gaming server/ web site, international direct funding and know-how collaboration in on-line gaming. However, the Bill has not included provisions in relation to numerous key points, together with knowledge safety of the customers, geographic restrictions and exclusions, and buyer grievance mechanism. Whilst the Bill is a welcome step in regulating the web gaming sector, the authorized framework envisaged underneath the Bill doesn’t deal with among the key areas of issues within the on-line gaming ecosystem, resembling a strict regulatory framework for the conduct of the platforms within the on-line gaming sector which is crucial 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 periods on the Bill and analyse the uncertainty regarding acceptable guidelines on this sector. The Bill could also be additional amended to incorporate sturdy provisions for safeguarding the pursuits of the web players in addition to the stakeholders.

 

AUTHOR

Ambuj Sonal, Associate Partner, Link Legal

Subham Biswal, Associate, Link Legal

 

Disclaimer

The contents of this text are for basic data and dialogue solely and will not be meant for any solicitation of labor. This article shouldn’t be relied upon as a authorized recommendation or opinion.