The Ministry of Electronics and Information Technology (MeitY) recently convened with key stakeholders from India’s burgeoning online gaming sector to discuss draft regulations under the Promotion and Regulation of Online Gaming Act, 2025. The crucial meeting aimed to address a range of concerns, with the definition of "stakes" emerging as a primary point of contention, potentially impacting the classification and regulation of various game types.
Key Takeaways
- The definition of "stakes" is a central issue, with industry fears that broad language could conflate casual games with real-money gaming.
- Stakeholders proposed a clearer definition for "online social games" to distinguish them from money games.
- Concerns were raised about ambiguous definitions of "material change" and the burden of re-registration for minor updates.
- Suggestions were made to leverage existing app store grievance mechanisms for smaller developers.
- The industry emphasized the need for predictable, light-touch regulation to foster growth and innovation.
Defining ‘Stakes’: A Crucial Distinction
The core of the discussion revolved around the definition of "stakes," which currently includes items like coins, tokens, credits, and virtual objects purchased within a game. Industry representatives argued that this broad interpretation risks misclassifying popular video games, such as Angry Birds or Minecraft, which feature in-game purchases but do not allow for real-world redemption. Such ambiguity, they warned, could lead to inappropriate regulatory scrutiny and create significant uncertainty for thousands of Indian game developers.
To counter this, stakeholders proposed a refined definition for "online social games." This definition would encompass games where users can purchase virtual items or features but are strictly prohibited from withdrawing, redeeming, or converting these items into cash or real-world value. This distinction, they believe, is vital to separate closed-loop virtual economies in entertainment games from the monetary transactions characteristic of online money games.
Addressing Other Regulatory Hurdles
Beyond the definition of "stakes," participants highlighted other areas of concern. The definition of "material change" was flagged as potentially burdensome, as it could necessitate re-registration for even minor game updates like bug fixes. This could create significant administrative hurdles, particularly for studios managing live games that require frequent updates.
Regarding grievance redressal, the industry suggested that existing mechanisms provided by app stores like Apple, Google, and Steam should suffice for most developers. They proposed that additional requirements for dedicated grievance officers should only apply to companies exceeding a revenue threshold of ₹100 crore.
Fostering a Thriving Gaming Ecosystem
Industry groups also advocated for the establishment of a Social Games Advisory Council with substantial industry representation. They stressed the importance of aligning India’s gaming terminology with global standards to prevent international confusion and attract investment. The overarching message from the stakeholders was that clear, predictable, and proportionate regulation is essential for India to become a global leader in the video game industry, fostering innovation, job creation, and IP ownership within the country.
