Online
gaming industry in India is fast maturing and it is moving
towards a consolidation. Both regulatory environment and business
mood is hinting towards a positive report about online gaming
industry of India. As the online gaming business essentially involves
use of information and communication technology (ICT), certain legal
precautions are essential to be observed.
For instance, both e-commerce players and online
gaming entrepreneurs must strictly follow cyber
law due diligence in India (Pdf). Presently neither the
e-commerce
players nor the online gaming entrepreneurs are observing
the cyber law due diligence requirements except a selective few one.
Of course, we have entrepreneurs like Laxmicoin that has decided to
wait for clear
regulatory requirements rather than engaging in illegal
online business. Even the corporate
environment in India is fast changing.
Till now we have no dedicated online
gaming and gambling laws in India. This has created an
atmosphere of uncertainty and fear among the online gaming
entrepreneurs in India. This is also the reason why very few players
have entered into the online gaming arena of India.
For instance, legality of online poker in India is
still a grey area. It is neither legal nor illegal. Just like
Bitcoins
exchanges operating in India, online
poker websites operating in India can be either legal or
illegal. It all depends how an online poker website is managed in
India. If it is complying with all the applicable laws and
regulations, it is legal to play online poker otherwise it is
illegal.
Governments around the world are trying to regulate
online gaming and gambling activities. Recently, the United Kingdom
asked the Internet service providers (ISPs) to insert warning pages
for unlicensed gambling websites. However, the ISPs
refused to comply with this demand. Similarly, Singapore
is planning
to ban online gaming and enact laws in this regard. India
is also planning an anti
match fixing law that may cover online betting as well.
On the other hand, governments are also trying to
liberalise the online gaming segment. The U.K. Gaming (Licensing and
Advertising) Bill has passed
the third reading in the House of Commons. Similarly, a
good
start for Internet and online gambling in New Jersey has
already taken place and there are very good signs that online poker
would be allowed
in United States very soon.
Back in India the regulatory environment for online
gaming is fast changing. Games like poker and rummy are finding
support of both community and legal and judicial fraternity.
According to Praveen Dalal, managing partner of New Delhi based IT
law firm Perry4Law,
the High Courts in India are protecting “Games of Skills” from
the Criminal actions. Recently, the Bangalore High Court in Kirana
S v. State of Karnataka Criminal Petition No. 76482013
(Pdf) held that playing Rummy is not a Criminal Offence as it
involved “Application of Skills”, inform Dalal. In fact, another
related matter is pending before the Supreme Court of India and the
Judgment of Supreme Court would decide the fate of Online Gaming
Industry of India, opines Dalal.
It seems this is a good time to start online gaming
businesses in India However, before doing so it would be a prudent
exercise to consult a good techno legal law firm regarding regulatory
compliances as any deviance may create troubles for the
entrepreneurs.
