The All India Gaming Federation (AIGF) has welcomed the advisory issued by the Central Consumer Protection Authority (CCPA) to celebrities and influencers to refrain from promoting betting and gambling firms, saying it will help in distinguishing genuine platforms from illegal entities. In this article, we will discuss the following aspects of the CCPA advisory and its implications for the online gaming industry in India:
- The background and rationale of the CCPA advisory
- The reaction and response of the AIGF
- The legal status and challenges of online skill gaming in India
- The need and benefits of a uniform law for online gaming in India
The background and rationale of the CCPA advisory
The CCPA is a statutory body established under the Consumer Protection Act, 2019, with the objective of protecting the rights and interests of consumers in India. The CCPA has the power to issue guidelines, directions, and advisories to prevent unfair trade practices and ensure consumer welfare.
The CCPA advisory came in response to increasing instances of advertisements promoting illegal activities such as betting and gambling. The advisory, in accordance with the Consumer Protection Act, 2019, has emphasised the prohibition of advertising, promotion, and endorsement of unlawful activities that are prohibited under various laws.
The advisory stated that such advertisements may mislead consumers and induce them to engage in unlawful activities that may have serious consequences for their financial and social well-being. The advisory also warned all stakeholders, including celebrities and influencers, that stringent action would be taken for endorsements of illegal activities, including betting and gambling.
The reaction and response of the AIGF
The AIGF is a non-profit society that represents the interests of various online gaming companies that offer skill-based games such as poker and rummy. It has been advocating for a clear regulatory framework for online gaming in India and has been highlighting the menace of illegal offshore gambling websites that operate in the country.
The AIGF has welcomed the CCPA advisory, saying it will help in distinguishing genuine platforms from illegal entities. The AIGF has expressed its gratitude to the government for taking such a decisive step against anti-national illegal offshore gambling websites, which have been advertising in India in the garb of surrogate news and sports websites.
“We are grateful to the Government for taking such a decisive step against anti-national illegal offshore gambling websites, which have been advertising in India in the garb of surrogate news and sports websites. This will help distinguish legitimate Indian online skill gaming operators, which provide the highest player protection measures and are a form of entertainment against these illegal gambling sites which are the main reason for widespread consumer harm and problems,” AIGF CEO Roland Landers said in a statement.
The AIGF also said that it has been constantly taking up these issues with various Central Ministries and also providing evidence of uninterrupted advertising on major Indian OTT, satellite channels, newspapers and as sponsors in multiple Indian sports leagues. It hoped that the TV networks, OTTs and news publishers will take this advisory seriously and not support these anti-national websites.
The legal status and challenges of online skill gaming in India
The AIGF also pointed out that poker and rummy are games of skill and not games of chance, as categorised by some State governments in order to justify the ban imposed on them. It cited the Law Commission of India’s 276th report that stated that poker and rummy were games of skill in which more skillful players get to win against novices. It also mentioned that West Bengal and Sikkim have excluded poker from the definition of ‘gaming or gambling’ and have allowed it to be played under a licence.
However, the legal status of online skill gaming in India is not uniform or clear. Different States have different laws governing gaming and gambling, some of which are archaic and do not address the nuances of online gaming. Some States have banned all forms of gaming for stakes, while some have allowed games of skill with certain restrictions.
For instance, Tamil Nadu has recently promulgated an ordinance banning all forms of online gaming for stakes, including games of skill. The AIGF has challenged the constitutional validity of this ordinance in the Madras High Court, saying it violates the fundamental rights of gamers and gaming companies.
Similarly, Andhra Pradesh, Telangana, Kerala, Assam, Odisha, Nagaland, Meghalaya, Arunachal Pradesh have also banned or restricted online gaming for stakes. On the other hand, States like Goa, Daman and Diu have allowed casinos to operate under licences. There is also no central law or authority to regulate online gaming in India.
This creates a lot of confusion and uncertainty for both gamers and gaming companies. It also exposes them to legal risks and harassment from authorities. It also hampers the growth and development of the online gaming industry in India, which has the potential to generate employment, revenue, and innovation.
The need and benefits of a uniform law for online gaming in India
The AIGF has urged the government to enact a uniform law for online gaming in India that would protect the consumers from illegal operators and also generate revenue for the State exchequer. The AIGF has suggested that the government should adopt a model law proposed by NITI Aayog, which is a policy think tank of the government.
The model law, titled ‘Guiding Principles for the Uniform National-Level Regulation of Online Fantasy Sports Platforms in India’, was released by NITI Aayog in December 2020. It proposes a self-regulatory framework for online fantasy sports platforms, which are a subset of online skill gaming platforms.
The model law defines online fantasy sports as games of skill that involve selecting a virtual team of real players from a sport and competing with other teams based on the actual performance of the players. It also lays down the eligibility criteria, operational guidelines, consumer protection measures, and dispute resolution mechanisms for online fantasy sports platforms.
The AIGF has said that the model law can be extended to cover other online skill gaming platforms as well, such as poker and rummy. It has also said that the model law can be adopted by the Parliament or by the State legislatures under their respective legislative powers.
The AIGF has claimed that a uniform law for online gaming in India would have several benefits, such as:
- It would create a level playing field for all stakeholders and ensure fair competition.
- It would protect the consumers from fraud, cheating, addiction, and money laundering by illegal operators.
- It would generate revenue for the government through taxation and licensing fees.
- It would create employment opportunities and foster innovation and entrepreneurship in the online gaming sector.
- It would promote the development of sports and skill in India by increasing fan engagement and participation.
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