Maharashtra is the latest state in India to join the growing wave of jurisdictions seeking to regulate the burgeoning online real money gaming (RMG) sector. Following Karnataka’s recent announcement of a licensing system, the Maharashtra government is actively formulating its own comprehensive regulatory framework, which will include a licensing fee for companies operating in the online RMG space within the state.
Minister of State for Home Affairs, Yogesh Kadam, recently informed the state’s Legislative Council about the government’s commitment to enacting stringent legal measures. These measures are primarily aimed at combating the increasing instances of financial fraud and cybercrime that have been linked to online gaming platforms
. “The Maharashtra government is formulating a uniform policy and stricter laws to regulate online gaming and tackle cybercrime,” 1 stated Kadam, signaling a significant shift in how online skill-based gaming for stakes will be governed in the state.
Top government sources have confirmed that consultations with industry stakeholders are currently underway to ensure the new policy is well-informed and effective. The Maharashtra government’s objectives are twofold: to provide robust protection to consumers against fraud and deceptive practices, and simultaneously to legitimize the rapidly expanding online gaming sector through clear legal and economic channels.
Industry experts believe that a well-defined regulatory framework will significantly enhance investor confidence in the online gaming market in Maharashtra. Roland Landers, CEO of the All India Gaming Federation, has consistently advocated for a central regulatory framework. However, in the absence of such a unified national policy, state-level regulations are seen as a crucial step forward.
According to industry stakeholders, a licensing system will also promote responsible gaming practices among users. Clear guidelines and oversight can help in implementing measures to prevent addiction and protect vulnerable individuals. Given Maharashtra’s large urban population and a substantial base of tech-savvy users, this move is anticipated to unlock further innovation and ensure the long-term sustainability of the online gaming industry within the state.
Legal experts have highlighted several indicators that underscore Maharashtra’s serious intent to regulate online skill gaming. These include the formation of expert committees tasked with studying the various implications and logistical aspects of regulating RMG.
Furthermore, the government is actively engaging with legal, financial, and technology stakeholders to create a regulatory framework that is both robust and adaptable to the evolving digital landscape. This approach also demonstrates an alignment with broader digital economy trends, while maintaining a strong commitment to user safety and accountability.
While states like Maharashtra and Karnataka are taking proactive steps, there is still a strong argument for a central regulatory framework at the national level. Roland Landers emphasizes that the central government, under the purview of the Ministry of Electronics and Information Technology (MeitY), possesses the constitutional authority to regulate online skill-based gaming.
He cites the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, in support of this argument. A unified national policy could provide much-needed clarity and consistency across the country, streamlining regulations for operators and ensuring a more cohesive approach to consumer protection.
Maharashtra’s move towards a licensing system highlights the fragmented nature of India’s current online gaming regulatory environment. With different states adopting varying approaches, operators face a complex web of rules and regulations. While some states have embraced regulation, others have imposed outright bans or are still in the process of formulating their policies. Maharashtra’s initiative is a significant development, given its economic importance and large user base, and could potentially influence other states to follow suit.
Key Highlights:
- Maharashtra is preparing to introduce a licensing system for online real money gaming (RMG) operators in the state.
- The primary goals of this move are to protect consumers from fraud and cybercrime associated with online gaming and to legitimize the growing RMG sector.
- The government is currently consulting with industry stakeholders to shape the new regulatory framework.
- Experts believe that a licensing system will boost investor confidence and promote responsible gaming practices in Maharashtra.