To ban or not to ban: The question around fantasy gaming platforms

1. To ban or not to ban: The question around fantasy gaming platforms December 2020 saw the Indian states of Tamil Nadu & Andhra Pradesh imposing a ban on online fantasy gaming, particularly those comprising gambling & wagering. These consists of games which comprise real money like fantasy sports betting or online card games. The Andhra Pradesh Legislative Assembly passed the AP Gaming (Amendment) Bill 2020 by voice vote on December 1 whereas Tamil Nadu passed an ordinance promulgated by Governor Banwarilal Purohit that banned wagering or betting in cyberspace via computers or any communication device. Both Tamil Nadu & Andhra Pradesh mentioned the reason that online gambling leads to youngsters being duped & results in them falling into debt. The ban also was the culmination of some youngsters committing suicide over the last few months. After these two states, now Karnataka is also in the process of banning online gambling. Even though there are worries regarding the effect of such games on youngsters, there exists an argument about it being gambling versus a game of skill. The apparent solution involves regulating a hugely unregulated sector through an appropriate framework. How Are The Bans In Those Two States Being Put Into Action? Speaking of Tamil Nadu, anyone found playing online gambling games will be charged a fine of Rs 5,000 & get six months imprisonment as a punishment. Moreover, Tamil Nadu has also imposed a ban on electronic transfer of funds for wagering or betting & disbursing winnings & prize money. Additionally, there are also provisions in the law to punish those found running online gaming companies which comprise wagering & betting. In the case of Andhra Pradesh, the 1st offence by an individual will lead to imprisonment of up to 1 year & a fine of Rs 5,000, with every consequent offence attracting imprisonment extending up to two years & fine up to Rs 10,000. Adhering to the bans, gaming app companies have made their games non-accessible in these 2 states for tournaments comprising real money. Co-founder & CEO of Mobile Premier League (MPL) Sai Srinivas said, “We have in- built geo-blocking to ensure that users from the states in question are unable to access cash or real money tournament formats for any of the games they offer.” CEO of RummyBaazi.com Sunit Warriach said, “We have been prompt in banning all the accounts and refunding the amount in users’ wallets from those states. Furthermore, we shut down all the marketing activities in those states and do not entertain any new registrations on the app.” Nonetheless, free versions of the games which do not comprise real money transactions can still be accessed by users of these two states.

2. An Industry With A Bright Future These bans by some Indian states on online gaming have transpired during the golden age of the industry, wherein it has been experiencing massive growth fuelled by the rising accessibility of cheap smartphones and internet throughout the country. To be specific, the Indian online gaming industry witnessed a growth of 40% in the year 2019, as per a report by the Federation of Indian Chambers of Commerce & Industry and Ernst & Young. This report which was released in March 2020 envisaged the sector to rise to a valuation of Rs 18,700 crore by 2022. The report preceded the Covid- 19 pandemic which significantly boosted the growth of the online gaming industry & this was moreover evident in the number of online gaming startups which managed to raise funds in the last quarter of 2020. To know more: https://www.gaming360.in/to-ban-or-not-to-ban-the- question-around-fantasy-gaming-platforms/