Real money gaming firms put out ethics code

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Three industry associations in the real money gaming (RMG) space put out a Code of Ethics for their members, they announced on Monday. The associations — the All India Gaming Federation (AIGF), the E-Gaming Federation (EGF) and the Federation of Indian Fantasy Sports (FIFS) — represent members like Dream11 and PokerBaazi, who run games where users can risk money for reward. For firms with over 10 crore users, the code kicks in in six months, and for others in nine months.

The Hindu reviewed a copy of the code, which seeks to prevent minors from playing their games, “protect vulnerable players,” and make sure games and their advertising are run in a responsible manner. The move comes even as the Union government’s regulations for RMG players are yet to kick in substantively, and States move independently in trying to put controls on the industry.

Self-regulatory body

While the industry continues to smart from the 28% GST imposed on their firms in 2023, the regulatory clarity that was supposed to emerge from the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023 has not materialised. The 2023 Rules require RMG firms to submit to a self-regulatory body (SRB), similar to the system in place for OTT streaming services. However, the government has not formally recognised any SRB proposed by RMG firms.

Separately, the industry is fighting off bans in Andhra Pradesh and Telangana, and resisting regulations such as those by the Tamil Nadu Online Gaming Authority (TNOGA), which has imposed strict usage limits on RMGs, such as preventing players from being online from midnight to 5 a.m., and an Aadhaar verification mandate that the firms argue could be done with other ID documents. 

The code’s provisions state that RMG firms should conduct an annual audit of whether they are compliant with the law. Other provisions include mandatory Know-Your-Customer verification, transparent terms, a self-exclusion feature where users can lock themselves out of playing for a certain period, and grievance redressal systems. Many of these commitments echo established practice in the industry.