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RMG in India: Striving for Standardisation and Responsible Gaming

Vishakha Srivastava by Vishakha Srivastava
24 October 2024
in Business
RMG in India: Striving for Standardisation and Responsible Gaming
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As a segment that commands 84% of the Indian gaming industry revenue, the importance of real-money games cannot be stressed enough. Given their monetary importance, responsible gaming and clear regulations are much needed in real-money games. For instance, your poker online experience will be more secure when you play on a recognised and ethical poker app.

Real-money games have attracted more than 100 million gamers in India. It is a segment that is eyed by giants like Meta as the next big opportunity in gaming. Real-money games in India have grown significantly and consistently over the years, and this growth is worth a relook.

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Real-Money Games in India: Growth and Significance

According to a Grant Thornton report, real-money games have an active user base of 100 million, of which 90 million are pay-to-play users. The average screen time of real-money gamers has also significantly increased over the years. The report observes that the average real-money gamer spends 8.5 hours per week in games. It is also observed that 90% of the real-money gamers play their favourite rummy and poker online at least once a week.

As per the Lumikai Gaming Report 2023, real-money games had a market size of $1.5 billion in FY22. This increased to $2 billion in FY23 and is expected to reach $2.4 billion by FY28. This represents a low growth in the years ahead, which the report attributes to the tax policies of the government. Notably, the tax rates are already at the highest slab, so any changes in them will only be positive.

A study by Meta found that 57% of real-money gamers are metro-based. As non-metro Indians join the gaming community, one can expect the number of real-money gamers to increase substantially.

At this point, there are a few things that could further help the real-money games industry in the days ahead.

Striving for Standardisation

As a segment, real-money games involve people’s time, skills and funds. This calls for a code of ethics in the industry to protect gamer’s interests. Among other things, the real-money game service providers must follow clear guidelines on ethical behaviour. They must be accountable to a regulatory authority and be transparent in their conduct. Independent certifications and self-regulation are also key to setting and maintaining high industry standards.

Another area of attention must be the digital safety in the industry. Being an online form of entertainment, these platforms are exposed to unique cyber risks and threats. CheckPoint Research shows global cyber-attacks increased by 30% in the second quarter of 2024. Once again, the presence of a standardised regulatory authority can ensure adherence to best practices. This, in turn, ensures that cyber threats and financial risks are proactively mitigated.

The State of Regulation in India

Earlier this year, the government indicated a shift in its approach to gaming regulation. So far, it has followed a certification approach under gaming rules. However, the government is now mulling over the introduction of time and fund-based limits to online real-money games. China has adopted similar limitations, which are part of its prohibitive measures on internet-based products and services.

However, China and (possibly) India are not the only countries considering a limitation-based approach. South Korea has the Cinderella Law in place that restricts night-time gaming among Korean teens.

Earlier in 2023, the Ministry of Electronics and Information Technology (MeitY) proposed the regulation of real-money games through Self-Regulatory Bodies (SRBs). These SRBs are in charge of certification and verification of online real-money games. So, if a new poker app is planning to offer online poker to the public, it can do so only after the SRB certification. These SRBs are also required to ensure users’ KYC before accepting deposits from them.

Onus on Platforms

As the industry awaits standardisation and responsible gaming measures, authentic real-money game platforms have addressed these aspects independently as well. Poker app Pocket52, for instance, follows a clear process when it comes to responsible gaming. To begin with, registration in Pocket52 is allowed only to users who are 18 years and above.

The platform encourages users to set time limits, take regular breaks, maintain a playing budget, not play when they are tired or under stress, and strike a balance with other activities in life. To ensure user safety on the digital platform, Pocket52 has obtained third-party certification on gameplay randomness, handles funds through secured payment gateways, and has a strict cybersecurity regimen in place.

An Aligned Approach

We can see a clear sense of purpose in the recent announcements coming from the government. In the days ahead, real-money games can expect clearer guidelines and compliances in place. In the meantime, legitimate real-money game platforms are adopting measures to prioritise responsible gaming and user safety in the industry.

Tags: gaming regulationsreal-money gamesresponsible gaming
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