Perspective: Regulating Online Gaming | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Introduction

• India is the biggest market for mobile gaming applications in the world in terms of app downloads. According to a 2019 survey conducted by Limelight Networks, India had the second-highest number of gamers globally, after South Korea. 
• The gaming industry in India grew at a CAGR of 38% between 2017 and 2020, compared to 8% in China and 10% in the US. 
• The All India Gaming Federation reported that revenue from online gaming grew by 28% in 2021 to $1.2 billion and is expected to reach $1.9 billion by 2024. 
• The surge in online gaming is being driven by the need for virtual entertainment, along with the widespread use of smartphones and affordable internet. There are over 275 gaming companies and more than 15,000 game developers in India. 
• However, concerns have been raised about the negative impact of online gaming on society, particularly the addictive nature of these games.

Impact of gaming on health

• The World Health Organization classified gaming disorder as a mental health condition in 2018. With increased screen time across all age groups due to the pandemic, concerns about the impact of gaming on health are growing. 
• Research indicates that gaming disorders can be linked to anxiety, depression, obesity, sleeping disorders, and stress. 
• People who spend extended periods playing games may be at higher risk of obesity, sleep disorders, and other health-related issues, according to the WHO. 
• Although time spent online in India is not as high as in other countries, nearly a quarter of adult Indian gamers missed work during the pandemic while playing games. 
• Gaming addiction can cause physical, social, and emotional harm, negatively affecting sleep, appetite, careers, and social lives.

Steps being taken

Globally

• China has limited online gaming for minors to three hours per week, during designated times, and placed the responsibility for enforcing this restriction on the gaming industry. 
• Many countries, including Australia, China, India, Italy, Japan, Korea, and Taiwan, recognize tech addiction as a disorder and have declared it a public health crisis. As a result, they have launched significant initiatives to address the problem, and India should follow their lead. 
• China has also banned unauthorized video game streaming, indicating a more stringent enforcement of rules as part of its broader crackdown on the gaming industry to eliminate content that the government does not approve of.

The case of India

• In the past two to three years, several Indian states have implemented laws prohibiting online games. Telangana was the first state to officially ban online gambling and betting in 2017, followed by Andhra Pradesh in 2020. 
• Tamil Nadu, Kerala, and Karnataka have also passed laws on this issue, but their respective High Courts have either struck down or stayed these laws. 
• The Rajasthan government has informed the High Court that it has drafted legislation to combat the problem of online gambling and betting.

What is the need for a Central level Law?

Failure of State Governments

• The state governments have expressed difficulties in enforcing rules related to online gaming, such as geo-blocking specific apps or websites within their territory, due to it being a state subject.
• Moreover, the lack of uniformity in regulations across states has led to inconsistencies in the way the online gaming industry is governed in the country. 
• Additionally, state governments do not have sufficient power to issue blocking orders for offshore betting sites like the central government does.

Suicides

• The widespread use of online gaming has raised societal concerns, with stakeholders pointing out that people have lost significant amounts of money while playing games online, leading to suicides in different regions of the country.

Deterioration of Health:

• Studies have shown that excessive gaming can lead to various health problems like anxiety, depression, obesity, sleep disorders, and stress.
• Prolonged periods of physical inactivity due to gaming can increase the risk of health issues such as obesity and sleep disorders, according to the World Health Organization. 
• During the pandemic, nearly one-fourth of adult Indian gamers reported missing work due to excessive gaming. Addiction to gaming can cause physical, social, and emotional harm by disrupting sleep, appetite, career, and social lives.

Lack of Regulatory Framework:

• There is a current lack of a regulatory framework to oversee online gaming companies, including enforcing grievance redressal mechanisms, player protection measures, data and intellectual property rights protection, and prohibiting false advertising. 
• The absence of consistent regulations has resulted in uncertainty for online gaming businesses. The government is considering establishing a central agency to handle all aspects of online gaming, including creating a uniform law to determine which types of online gaming are legally allowed.

Recommendations

Central-level law for online gaming:

• The Task Force’s Report suggests that a central-level law for online gaming is needed to regulate both real money and free games of skill, such as e-sports, online fantasy sports contests, and card games, among others.
• Casual games without real money stakes may be exempted from such rules, unless they have a large user base in India, or allow the dissemination of inappropriate content such as violence, nudity, addiction or misleading information.

Regulatory body for the online gaming industry:

• The report also recommends the establishment of a regulatory body for the online gaming industry. 
• This regulatory body will determine whether a game is a game of skill or chance and certify different gaming formats accordingly. 
• The regulatory body will also ensure compliance and enforcement of gaming laws.

Three-tier dispute resolution mechanism

• The Task Force Report recommends establishing a three-tier dispute resolution mechanism for online gaming, similar to the one prescribed under the Information Technology Rules, 2021 for online streaming services. 
• This mechanism should consist of a grievance redressal system at the gaming platform level, a self-regulatory body for the industry, and an oversight committee led by the government.

‘Reporting Entities’ under the Prevention of Money Laundering Act, 2002

• According to the report, any online gaming platform, whether domestic or foreign, that offers real money online games to Indian users must be a legal entity incorporated under Indian law.
• These platforms will also be considered as ‘reporting entities’ under the Prevention of Money Laundering Act, 2002, and they will be required to report suspicious transactions to the Financial Intelligence Unit-India.

Wrapping it up

• The Minister of Information Technology, Ashwini Vaishnaw, has announced that the Central government is consulting with all stakeholders to develop a comprehensive policy or a new law on online gaming.
• The government also needs to generate awareness among the youth and their parents about internet addiction and educate them about the responsible use of the internet.

Rajasthan government advisory

• The Rajasthan government has issued an advisory urging parents and teachers to be vigilant of abnormal behavior in children and prevent addiction to online gaming.
• The advisory includes measures to protect children from getting overly involved in online gaming and suggests establishing an “internet gateway” at home to monitor their child's internet usage.

Other

• The Central Board of Secondary Education (CBSE) has recently launched a counseling app for students called “Dost for Life,” which provides counseling for Internet addiction disorder, depression, anxiety, and SLD.
• In India, treatment for Internet addiction is provided through special clinics for behavioral addiction in institutions such as AIIMS, NIMHANS, and RML Hospital.
• Although no national policies or programs target Internet addiction, the Indian Psychiatric Society (IPS) has developed guidelines for the management of Internet addiction.

The Gaming industry in India has witnessed significant growth, and the government has recognized the potential benefits of investing in the industry, resulting in the development of draft guidelines for the regulation of online games, including fantasy sports platforms. Additionally, plans are underway to establish a Center of Excellence for Gaming, although further research is required to determine how these initiatives may impact problematic Internet use.

Various policies have been implemented by governments worldwide to restrict the amount of time children and adolescents spend online, particularly in gaming. Examples include Thailand's "Gamer Guard" policy, China's "Fatigue System" policy, and South Korea's "Shut Down" policy.

Blanket Ban not a panacea

• The article argues that blanket bans or prohibitions on gaming can be harmful to society, as people may resort to criminal activities to circumvent them. 
• Instead, the gaming industry should focus on building preventive algorithms into their games, which can help players develop the ability to decide when to stop playing and identify problematic behavior. 
• Harm reduction initiatives should include warning messages, restrictions on advertising, and regulation of product development. 
• Multisectoral coordination involving experts from various fields should also be considered to promote responsible Internet use. 
• The article suggests that policy planners and implementers should allocate funds towards preventive and curative measures, as the online gaming industry has the potential to attract innovation, creativity, funding, and revenue. 
• Finally, the article recommends the establishment of a Central Level Regulatory Body as a positive step forward.