L. Badri Narayanan, Executive Partner, Lakshmikumaran & Sridharan Attorneys on How 2020 Saw India Grow as an Even Bigger Gaming Hub.
With the pandemic confining people to their homes, India has seen an exponential increase in recreational online gaming companies and users this year. While investors may see this as a potential opportunity, states are also cognizant of the increase and are in the process of enacting laws to regulate/prohibit such activities. Andhra Pradesh and Tamil Nadu are the latest states to have prohibited online gaming, citing losses to users causing adverse impact on their economic state, personal and social life. These concerns could be better addressed by regulating the conduct of online gaming instead of imposing an absolute ban which may instead create illegal markets and complications under other laws relating to payment systems, deposits and anti-money laundering which runs counter-productive to its object. The Central Government should frame a draft model law for the states to adopt for the reform and regulation of online gaming, with particular relaxation to skill-based games.