Wednesday, December 28, 2022

MeitY is now the leading ministry for online gaming



The online gaming industry has long demanded that the sector be regulated by legislation at the central level. MeitY established an interministerial task force in May to propose regulations for online gaming.

Rajeev Chandrasekhar, Minister of State for Electronics and IT, stated on Tuesday that the Ministry of Electronics and IT (MeitY) will soon publish rules for online gaming platforms and begin public consultation on the regulations.

Monday's official gazette stated that MeitY is now the primary ministry in charge of regulating online gaming.

“Committed to fully encouraging technology innovation — but also to ensure that no illegal content or services are possible,” Chandrasekhar stated in a tweet.

Recently, Chandrasekhar had let Parliament know that the public authority knew about the conceivable gamble and difficulties of web based gaming, including the gamble of "savagery abetting computer games, dependence on it, and important monetary misfortune."

The internet gaming industry has been for a long requesting focal level regulation to control the area. MeitY established an interministerial task force in May to propose regulations for online gaming.

The task force recommended, among other things, establishing a central regulatory body for the industry in October, clearly defining what games of skill and chance are, and subjecting online gaming to the Prevention of Money Laundering Act of 2002.

The internet gaming industry has invited the service's arrangement as the nodal organization.

According to Joy Bhattacharjya, director general of the Federation of Indian Fantasy Sports (FIFS), "The appointment of MeitY as the central regulatory authority will provide clarity and certainty to investors, industry, and consumers."

"The decision is in line with the government's plan to promote the expansion of the animation, visual effects, gaming, and comics (AVGC) industry and establish India as a global center for online gaming. We are confident that the online gaming industry will expand responsibly under MeitY by establishing a regulatory framework that is well-balanced,” he added.

The Indian mobile gaming industry's revenue is anticipated to exceed $1.5 billion in 2022 and $5 billion in 2025, according to a report by management consulting firm BCG and venture capital firm Sequoia. Between 2017 and 2020, the industry expanded at a CAGR of 38%, compared to 8% in China and 10% in the United States. It is anticipated to reach Rs 153 billion in revenue by 2024 at a CAGR of 15%.

India's level of new paying clients (NPUs) in gaming has been the quickest developing on the planet for two continuous years, at 40% in 2020 and 50 percent in 2021. Transaction-based games' revenues increased 26% in India, according to a report by EY and FICCI, and the number of paying players increased 17%, from 80 million in 2020 to 95 million in 2021.

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