The Indian Esports industry, while growing at a rapid pace over the last few years, has been largely unregulated. But, this does not mean the government has completely shut off from this newfound sector.
With Indian Esports players being steady contenders for medals at the Asian Games 2023 and Commonwealth Games 2022 eSports demonstration event, the top athletes are now asking the government to regulate the sector. Their need also arises out of a common confusion between two sectors in India, online gambling that uses basic games such as Ludo or Poker, and Esports.
In light of this, some of the top Esports athletes and streamers from India met with PM Modi on 11th April, at a round-table conference. However, as per the discussion that ensued, the government is not completely moved by the idea of Esports being a regulated industry.
Why is Regulation Necessary?
According to the gamers, the need for regulation is important since it will finally legitimize Esports as a competitive sport. While there are many local and national level tournaments held for games such as FIFA, Free Fire, Call of Duty, etc., most of Indian society still does not accept them at the level of other sports.
The athletes also believe that government regulations will help people easily differentiate between gambling-based games and skill based games, as the two are completely separate industries.
They highlighted the fact that many people are led astray by ‘Real Money Gaming’ since they equate it with video gaming. However, the games falling under the Esports category require mental and physical skills, and most importantly there is no factor of gambling present.
Last year, the Indian government levied a heavy 28% GST on all ‘online games’ in a bid to tackle the growing online gambling sites. However, this has resulted in the same GST being levied on non-gambling online games as well.
Since many online gambling sites also use the term Esports when offering fantasy leagues, there is a clear distinction required between the two. Over 45 Indian video game companies have already submitted a petition regarding this, and are awaiting a hearing from the Supreme Court on that matter.
No Regulations Currently in Sight
While the government is definitely in line with the idea of restricting online gambling through regulations, there is currently no plan to regulate the Esports sector.
PM Modi stated that it is not in the interest of the government to intervene into an industry. However, he is in favor of providing legal structure to the sector and also uplifting it via organized means.
He has currently asked the athletes to reach out to him via mail with all of their pointers. So, maybe some form of regulation can be expected in the future that will at the least separate the online gambling sector from Esports.
