The Indian government is reportedly planning to establish an inter-departmental committee to regulate online gaming platforms, according to a recent report by the Directorate General of GST Intelligence (DGGI). This move is aimed at ensuring that online gaming platforms adhere to appropriate regulatory standards, addressing concerns over the industry’s growing influence and associated risks.
The proposed committee will include representatives from key government bodies such as the Enforcement Directorate (ED), the Reserve Bank of India (RBI), as well as tax and consumer affairs departments. These agencies will work together to create a comprehensive regulatory framework for online gaming platforms, ensuring that they comply with the country’s financial, legal, and consumer protection norms.
This initiative follows growing concerns over the rapid rise of online money gaming in India. The DGGI’s annual report specifically identified online money gaming as a “high-risk” industry, drawing attention to issues such as potential tax evasion, money laundering, and consumer exploitation. With the industry expanding at an accelerated pace, the need for effective regulation has become more pressing to safeguard players and ensure ethical business practices.
The establishment of this committee could mark a significant shift in how online gaming is monitored and regulated in India. By involving multiple departments, the government aims to address the complex regulatory challenges posed by this sector. The collaboration between agencies like the ED, RBI, and DGGI signals the government’s intent to adopt a multi-faceted approach to ensure financial transparency and consumer protection.
This regulatory framework is expected to not only curb the risks associated with the online gaming industry but also encourage responsible growth within the sector, fostering a safer environment for players and operators alike.
