Published: 11th Jan, 2024
Context
A three-judge Bench headed by Chief Justice of India sought a response from the Directorate General of Goods and Services Tax Intelligence based on the plea by Dream 11, Games 24x7, and Head Digital Works for imposing the 28% GST on all online money gaming platforms.
Online Gaming
- Brief Overview:
Online games as “a game that is offered on the internet and is accessible by a user through a computer resource or an intermediary.”
Historical background
- Online games are administered by the Public Gambling Act 1867and the Information Technology Act 2000, which regulates online gaming activities in India.
- Section 66 of the IT Act2000 looks in the crime related to computers.
- Section 67, 67A, and 67B of IT Act deal with the discretion to make laws on the subject of online gaming, as gambling and betting are included in the state list of the constitution.
- Various state government also formulated laws such as Bombay Prevention of Gambling Act, 1887 to regulate the online gaming
Key Debate: Game of skill vs Game of chance
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Online games which uses human intellect, i.e skill, are called ‘game of skill’ is legal in India. |
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Online games played using chance where results are obtained by a chance not using human intellect is a ‘Game of chance’ which is not legal in India , that’s why gambling and betting is not legal in Indian states, |
Major concerns:
Issue of Cyber bullying:
- Through Harmful and derogatory messages ,global spam which may lead to suicide and self-harming behaviour
- Due to easy to use models, minors can be harmed without information.
Social Issues;
- Recently large number of People losses the large sum of money through Online gaming.
- Most of the user does not aware about the potential risk involving the Privacy violations(Article 22)
Regulatory Framework:
Aspect of grievance redressal mechanism, Personal Data Protection is not adequate ( anonymity of the Participant )
Unnecessary Regulations: Govt. imposes 28% GST on all platform lowers the natural growth of the sector.
Way Forward:
- Limited Oversight
- Industry specific checks and Balance can be included
- User friendly KYC and anti-money laundering regulations.
- Limits minors from accessing manipulating games under parents guidance.
- National level Regulatory body
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- A Gaming Authority at the central level should be created. It could be made responsible for the online gaming industry
- Balancing the economic opportunity and social cost
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- More and more youngsters are getting hooked on online games. Considering this, the Online gaming industry needs to be relaxed regulated in India. However regulation of online gaming should also address its social costs.
- Awareness campaign: Proactive Approaches and Parent led Locking unlocking through OTP
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