Gaming rules: Gaming companies seek tweaks in draft rules in submissions

The role of the proposed self-regulatory body (SRB) and the process of registration of games were among the key issues on which online gaming platforms and industry bodies have put forth their suggestions, while making their submissions to the Ministry of Electronics & Information Technology (Meity) on the draft rules for the sector.

The gaming committee of the Internet and Mobile Association of India (IAMAI) has sought a common framework to be laid down by the government for the SRBs to follow so that uniform compliance and transparency can be ensured.

Last month, before the draft regulations were released, the IAMAI had said that it was best suited to become the self-regulator for the gaming sector. However, that proposal was shot down by the government earlier this month, when minister of state for electronics & information technology Rajeev Chandrasekhar said industry bodies would not be permitted to become self-regulatory organisations and that SRBs had to be away from the dominance of gaming intermediaries.

In its submission to Meity, Delhi-based online gaming platform WinZo, which offers real money games, has batted for multiple SRBs, or self-regulatory organisations, to coexist.

“Our concerns with the constitution of SROs (or SRBs) for regulation of the online gaming industry, primarily stem from the inherent biases, conflicts of interest, between the SROs’ regulatory functions and its members, market operations, issuers, and shareholders, in as much as it was envisaged that an SRO, apart from having certain neutral members, would also necessarily consist of industry players,” WinZo said in its representations. “However, the draft rules allow for the possibility of multiple SROs and hence the initial apprehension has been allayed.”

For the proposed self-regulator, the IAMAI has pitched that at least one member be a retired judge of the Supreme Court or a high court, “since the SRB will perform an adjudicatory function”.

As per Meity’s proposal, an SRB would include a member each from the field of online gaming, sports, or entertainment; online gaming industry; the field of psychology, medicine or consumer education; and information and communication technology. It also suggested that the central government nominate a member with experience in public policy, public administration, law enforcement or public finance.Mumbai-based Games24x7, which operates RummyCircle and My11Circle platforms, has urged the government to have an oversight body with adjudicatory powers for the SRBs. “Such a mechanism will ensure a robust adjudication process for industry’s smooth governance,” it said.

It has suggested that the existing grievance appellate committee formed under the IT intermediary rules be empowered to handle grievances raised by online gaming platforms till a separate appellate body is put in place.

Meity had released the draft amendments to the IT intermediary rules earlier this month to ensure online games are offered in conformity with Indian laws and users are safeguarded against potential harm.

It had initially given stakeholders time till January 19 to make their suggestions and comments, but later extended the deadline till January 25. In its draft rules, the government proposed a self-regulatory mechanism, mandatory verification of players and physical Indian address for online gaming companies.

The rules also propose that self-regulatory bodies be registered with the ministry. The SRBs will register games of online gaming intermediaries, which are their members and meet certain criteria. They will also resolve complaints through a grievance redressal mechanism.

Gurgaon-based startup industry body IndiaTech has suggested a three-tier dispute resolution framework instead of a two-tier structure as suggested in the draft rules. “An oversight body may be constituted by the self-regulatory body as Grievance Appellate Gaming Council, consisting of experts with relevant knowledge and experience of the online gaming industry,” it said.

Since the rules allow for one or more self-regulatory bodies, “there is a risk of forum shopping by the intermediaries”, IndiaTech said. “An oversight body can reduce or control the risk of forum shopping and can ensure that the powers and functions of self-regulatory bodies are not compromised,” it added.

In addition to the structure of the SRB, stakeholders have also sought changes to how registration of online games would be done with a self-regulator.

Games24x7 has suggested a two-step registration process. “SRBs can register online games in two steps: provisional registration and final registration. Based on the provisional registration, the operator can offer the game and provide data to the SRB so that it can run technical tests that may be required for game verification,” it said, adding that this is because an intermediary can provide real-world data only after running a game for a certain amount of time.

WinZo has raised concerns over the extent of powers given to the SRB for registration of an online game, including the determination that an online game is a game of skill.

“In our experience, such a pre-registration is highly likely to compromise the confidentiality of information required to be submitted for evaluation/certification and lead to IP (intellectual property) leaks which is the single most important asset a game developer has that cannot be protected by a patent. Potential delays may also compromise the first-mover advantage,” WinZo cofounder Saumya Singh Rathore told ET.

The All India Gaming Federation, which represents a clutch of online gaming platforms, said in its submissions that companies should be allowed to do self-certification of new games on the basis of a given checklist of requirements, following which they can apply for registration after 90 days. This, the federation said, would give time to game developers to take the first mover advantage in any unique products they develop.