Karnataka Assembly passed the Karnataka Police (Amendment) Bill 2021 in order to curb online gaming and curtail web gambling. The aim is to stop wagering, betting and gambling of all forms online, and although the motive has been hailed by stakeholders, gamers believe the government needs to put forth a clear demarcation of what kind of online gaming comes under this ban and what does not.
A day after Karnataka government passed this bill, eSport enthusiasts are in a quandary about whether the generic use of the phrase ‘online gaming’ would now a cause for concern. Games explain that it is as vague as the definition of a live band, which caused much confusion for musicians who played in bands when the government declared a ban on live bands a couple of years ago.
“eSports is on the rise globally and India has the potential to compete on the global stage. There has been a 300% growth in the number of skilled gamers in our country annually. This will surely be a setback to millions of aspiring and budding gamers in the state. So, it is more important now for the government to clearly define the difference between a game of chance and a game of skill,” says Yash Pariani, Founder and CEO, Indian Gaming League (IGL).
“I'm not sure if the new ruling will apply a blanket ban to all kinds of online games. So, I will wait for more clarity to gauge further implications of this bill," says Kiran Noojibail, Co-founder and Head of Esports, Newgen Gaming - Penta Esports.
Clarity on difference between eSports and betting games is crucial: Gamers
According to gamers, there have been instances of people running online gaming companies that claim to come with eSport titles, but are legally not. “You cannot take money from gamers to play a game and then randomly reward them with money and call them professional players. That is not eSports, that is gambling – a game of chance. Many professional gamers are approached to endorse this sort of gambling too, and I have known of a few who have refused to do so. eSports include skill-based online games, and like any other sport, playing them require years of practice. I hope there is a clear demarcation on what comes under the ban and what does not as this decision will affect the real professional gamers adversely,” explains gamer and eSports athlete Ankit Panth.
Aayush Pandey who is a publicist and a gaming industry observer says, "Fantasy games and online poker are a mix of luck and skill. So, when people lose money in those, they get demotivated and the inclination towards participation decreases. As far as the frauds are concerned, fraudsters are misusing the fact that online gaming is rising and they are creating bug games and alluring gamers, that is ultimately leading to cyber frauds.”
Ban to affect as many as 623 gaming startups across the country, but regulating the gaming industry is a challenge: Cybersecurity personnel
While the goal behind the ban, which is to curb betting and gambling is clear, regulating online gaming platforms might not be easy. Reports suggest there have been over 600 gaming startups across the country, most of which that have mushroomed over the last two years.
Cybersecurity entrepreneur and expert Rahul Sasi who is the founder and CTO of CloudSEK, explains, "In the recent past, many betting sites have popped up and while some of them are legit - some of them have been scams. Most of these betting sites that our cyber security, machine intelligence company has analysed, seem to have originated outside India. And, the perpetrators behind these sites allow payments inside India and use mule accounts to cash in. And a ban on these might not be an effective way to stop them, as cross border cybercrimes are quite tricky to stop."
Games involving wager and betting are addictive in nature, says psychologist
Psychologist Neha Cadabam welcomes the government's move to ban such platforms. "Gambling and online gaming can be very addictive as it activates the same brain pathway that gets activated while consuming alcohol and drugs. And the idea of earning a quick buck and the need to win, can be quite alluring to many, leading to this becoming a habit. And with WHO (World Health Organization) recognising gaming addiction as a disorder, this move would also help in checking that aspect as well."
‘Past experience in other states has clearly shown that bans are largely ineffective in protecting players’
"The online gaming industry has always been supportive of stringent regulations that would ensure the safety of players and a well-defined licensing system, the likes of which already exists in states like Sikkim, Meghalaya etc. Most states in India allow games of skill as it is protected under section 19 of the Constitution of India. Despite clear protection and distinction made between games of skill and games of chance and multiple decisions at both the high courts (including the very recent case in the Madras High Court) and Supreme Court, the state has chosen to enforce a universal ban that will affect the entire industry. Past experience in other states has clearly shown that bans are largely ineffective in protecting players and only lead to fly by night operators who do not follow the stringent checks and balances that certified operators ensure, thereby taking advantage of players," stresses Sameer Barde, CEO, The Online Rummy Federation(TORF).
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