Govt Mulls Enforcing Prohibition Clauses Before Other Sections Post Online Gaming Bill Notification

The government is considering enforcing the 'prohibition clauses' first up, ahead of other sections, once the Online Gaming Bill gets President's nod and is notified, IT Secretary S Krishnan has said, adding that work has, meanwhile, already commenced on drafting rules for the other provisions of the legislation.

Krishnan told PTI in an interview that the proposed rules in the works will provide a framework for promotion and regulation of e-sports and online social games, as well as the constitution of the regulatory authority envisaged in the Promotion and Regulation of Online Gaming Bill, 2025.

Parliament has passed the bill to ban all forms of games played with money, and promote e-sports and online social gaming, with the Rajya Sabha on Thursday approving it without debate amid din.

The government has asserted that online money gaming has become a serious social and public health issue, causing demonstrable negative impact on society. At the same time, the Centre has thrown its weight behind promoting e-sports and social gaming, and wants to position India as a global hub for game development.

"There is a social evil (around online money games) that the government has wanted to address (through the Bill)...And I think we need to respect that sentiment and make sure that we are able to do whatever work we need to do at the backend much more quickly," Krishnan said.

The Ministry of Electronics and IT is gearing up for fast implementation once the presidential nod comes through.

"This is not a legislation which we can allow to just stand on its own. We are examining whether it is possible to bring into effect the ‘prohibition' ahead of other sections because in the Bill, there are no specific rules which have to be framed for that part. The only thing we have to do is notify the authorities who enforce," Krishnan said.

Asked if the overall rules may be finalised in the next six months or so, Krishnan asserted that it will be much faster.

"I would not commit to a timeframe, but it clearly can't wait as long," Krishnan said, adding "We have already started working on drafting the rules." On the fate of real-money gaming platforms engaged in sports sponsorships and as well as high-profile endorsements involved, Krishnan made it clear that the onus of compliance rests with the parties concerned.

"They will have to read the law and find out for themselves as to whether they are violating the law or not...figure out whether they are acting in accordance with the law," he said.

Krishnan debunked allegations by a section of the industry on policy flip-flop arising from banning online money games.

"...Many people in the industry themselves came and told us at that point 2-3 things. One that the mechanism of self-regulatory bodies may not be a desirable mechanism. It would be better to have the government regulatory body vested with an authority that would be more credible. Second, a clearer delineation between the different kinds of games...So, I think it was fairly clear to everybody in the industry that that policy or rule framework was on hold and the government was considering this issue closely," he said.

On concerns around job losses, he said the employment numbers directly tied to real-money gaming could run into a few thousand, while in contrast, the number of individuals adversely impacted by gaming addiction runs into "several crores", he said.

Instances of suicides, deep family distress, and financial ruin underscore the magnitude of the social harm, he said, adding that society must consider whether protecting a few thousand jobs outweighs the harm inflicted on millions of households.

"There have been suicides, instances of deep family distress...So, I would say that when it came to a question of whether you are looking at a few thousand jobs of talented youngsters who are experienced software professionals and so on, who can easily find another job, because that is the category of people we are talking about, as opposed to the livelihoods of crores of Indians, and hundreds of millions of Indians whose lives and livelihoods are at stake, I think the decision is clear as to which way society needs to view that issue," Krishnan said.

On the issue of investment, he said India’s FDI policy has always been guided by reason and ethics, with a preference for sectors that generate real societal value. Investment is welcome in productive, nation-building areas, but given the harmful and detrimental impact of online money gaming, the loss of a few billion dollars of investment in that sector should not be a matter of concern.

"And ultimately, what is it coming for? It is chasing profits from the distress of people so that you can funnel them back to the overseas investors. Now, is that something which is truly desirable?" he said, adding that having this policy clarity now will direct investments in the India growth story, and into areas where it is required.