The Indian government is contemplating a law to regulate the gaming industry — which has been under the scanner of various policymakers— which envisages a regulator.

In this regard, according to government sources, meetings have been held that have been attended by representatives of various government organizations, including TRAI, Ministry of Electronics and IT, Ministry of Information and Broadcasting, and, probably also, the Ministry of Home Affairs.

According to a report on news18.com on Tuesday, the government is proposing a regulator to reduce worries of money laundering and uncertainty in the skill gaming sector. The industry is also in favor of such a move.

According to the news18 report, people familiar with the matter said while the government is considering possibilities for regulating such organizations, it is of the opinion that the task should not be entrusted to any financial sector regulator because the job may not suit its core competency.

It is worth noting that India is one of the world’s top five mobile gaming markets. According to Statista, the market value of the Indian skill gaming sector was around Rs 9,000 crore in FY20, and it was predicted to reach Rs 14,300 crore in FY22.

According to the KPMG-FICCI 2021 report, India’s gaming market will reach Rs 143 billion ($2.03 billion) by FY22, up from Rs 62 billion in FY21. According to recent reports by Sequoia India and Boston Consulting Group, the mobile gaming market in India is expected to grow to $5 billion by 2025, up from $1.5 billion at present.

Some of the issues that are likely to be discussed in future meetings within the government include how to tax earnings from gaming by an individual who is playing on a website that’s located overseas.

Though gaming and betting is a State subjects under the Indian laws, earnings from such activities fall within the ambit of the federal government, which gives rise to a dichotomy in implementing rules, legal experts told Indianbroadcastingworld.com.

The news18.com reports quoted the All India Gaming Federation (AIGF), which was established in May 2016, as saying: “All member entities offering online games of skill, primarily online fantasy sports games, online rummy, casual games, and poker games will be duly incorporated/ registered in India or have a corporate presence in India.”

In the legal section, according to news18.com, AIGF says: “Participation in pay-to-play game formats in India will be restricted to users in only those Indian states in which the pay-to-play formats of the games are legal…play-to-pay formats of games of members will not be offered to or targeted at any person less than 18 years old.”

How and when a new rule or a regulator will come into force will have to be seen.