GS Paper 2
Syllabus: Government Policies and Intervention
Source: TH
Context: The article emphasizes the need for robust regulation in India’s online gaming industry due to emerging market failures, including concerns about addiction, mental health, financial fraud, and national security issues.
What is Online gaming?
It refers to video games/mobile games that are played over the internet through various devices. E.g., multiplayer online battle arena (MOBA) games, first-person shooter (FPS) games, massively multiplayer online role-playing games (MMORPGs), and many others.
Types of online gaming:
- e-sports(well-organized electronic sports which include professional players),
- Fantasy sports
- Casual games:these can be either skill-based (mental skill) or chance-based (based on a random activity like a roll of a dice) online games.
Issues with Online Gaming:
| Issues | Description |
| Addiction | Online gaming addiction can lead to physical and psychological harm, as well as interfere with daily life activities. |
| Gambling addiction: Online gambling games can lead to addiction and financial problems. | |
| Cyberbullying | Online gaming can involve communication with other players through chat or voice features, which can lead to cyberbullying and harassment. |
| Security risks | Online gaming platforms are at risk of cyber-attacks and data breaches, which can result in compromised personal and financial information. |
| Inappropriate content | It can contain violent, sexual, or other inappropriate content that is not suitable for all ages. |
| Ethical Concerns | It can perpetuate negative stereotypes and biases, particularly towards marginalized groups; In-game purchases can lead to overspending or exploiting vulnerable individuals. |
| Cheating and hacking | It can be prone to cheating and hacking, which can ruin the gameplay experience for others. |
| Physical and health issues | Long periods of sitting and staring at a screen can cause physical health problems such as eyestrain, back pain, and carpal tunnel syndrome. |
| Social isolation | Excessive online gaming can lead to social isolation and a lack of face-to-face communication with others. |
| Loss of Tax revenue | The growth of illegal offshore gambling markets is identified as a major challenge, leading to potential harm to users and substantial losses in tax revenue. |
Ministry of Electronics and IT (MeitY) has released the Draft Rules for Online Gaming (as an amendment to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021)
| Provisions | Description |
| Self-Regulatory Body | Online gaming companies must register with a self-regulatory body. |
| The body must have a board of directors with five members from diverse fields, including online gaming, public policy, IT, psychology, and medicine. | |
| Due Diligence | Online gaming companies must undertake additional due diligence, including KYC of users, transparent withdrawal and refund of money, and a fair distribution of winnings. |
| Random Number Generation Certificate | Gaming companies must secure a Random Number Generation Certificate, typically used for card games, to ensure that game outputs are statistically random and unpredictable. |
| Restrictions on Betting | Online gaming companies will not be allowed to engage in betting on the outcome of games. |
| Compliance | Online gaming platforms must appoint a compliance officer, a nodal officer, and a grievance officer. |
Other regulations:
- State subject:Online gaming so far has been a state subject, but state governments are finding it extremely difficult to enforce certain rules like geo-blocking certain apps or websites within the territory of their state.
- Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Bill, 2022 prohibits all forms of online gambling and allows for the regulation of online games that are not considered gambling.
- The bill prohibits minors from participating in online games and prohibits the promotion of online gambling and gaming through advertising or other means.
- Karnataka governmenthad previously banned all forms of online gaming where the transfer of money is involved
- GST:A proposed 28% Goods and Services Tax that may soon be imposed on deposits
Case study: UK Model for Regulation
The UK model for online gaming regulation involves a centralized government regulator that enforces strict measures to ensure player protection. Quarterly reports on regulatory effects are published, imposing significant fines on operators violating player protection requirements. This strict enforcement, coupled with harm reduction efforts, has led to a decline in disordered gaming and risky behaviour
For: Voluntary Code of Ethics by the Online Gaming Industry: Click here
Way forward:
Clear and consistent regulations, responsible gaming measures, industry self-regulation, public awareness campaigns, and collaboration between industry and government can all help to create a sustainable and responsible online gaming industry in India.
Conclusion:
The online gaming industry in India can continue to grow and provide entertainment and employment opportunities while also protecting players and promoting responsible gaming practices
Insta Links
Mains Links:
“Internet gaming has turned worse than drugs”. Do you agree? Critically examine the statement in light of the announcement made by the World Health Organization (WHO) to include “gaming disorder” as a mental health condition. (250 words)
How does gaming addiction, impact children? Do you think China’s recent imposition of a three-hour limit on gaming, is a good way to tackle it? (150 words)
