AIGF, EGF, and FIFS adopt ‘Code of Ethics’ to push for responsible real-money gaming

In April 2023, the Ministry of Electronics and Information Technology (MeitY) notified gaming-related amendments to the IT Act, 2021, which allowed multiple self-regulatory organisations (SROs) to determine whether a real-money game could be permitted in India or not. However, the ministry is said to have later dropped the SRO plan.

Over the years, several RMG companies have pushed for a uniform central regulation to eliminate the uncertainty of navigating through various state-specific regulations that frequently disrupts their business operations.

A central regulation is also crucial to fight the menace of illegal offshore gaming operators since a state law cannot be enforced against a foreign operator, executives have previously told Moneycontrol.

AIGF has over 120 members that include companies such as Mobile Premier League (MPL), Nazara Technologies, Gameskraft, Zupee, and Head Digital Works (A23). Meanwhile, EGF represents the country's top rummy and poker operators such as Games24x7, Junglee Games, Head Digital Works, while FIFS counts fantasy sports major Dream11 as its founding member.

To whom will it apply?

The framework will apply to all skill-based gaming operators that are members of these federations, which together represent close to 200 companies offering real-money gaming services in India, the industry bodies said.

Skill gaming operators with an annual revenue of Rs 100 crore and higher will have to implement the framework within six months, while those with annual revenue below Rs 100 crore will have nine months to comply. Following this, federations will issue a certification that would be valid for one year that can be renewed every year after a third-party independent audit.

The framework will be reviewed annually to assess its effectiveness and identify areas for improvement, the bodies said.

AIGF, EGF, and FIFS had previously signed a voluntary Code of Ethics in December 2023 as part of an initiative led by the influential industry body, the Internet and Mobile Association of India (IAMAI). However, it was not made mandatory for the skill-gaming members of the respective bodies.

The new framework is a separate initiative, jointly formulated by the three skill-gaming industry bodies. It also comes a month after these federations signed a Memorandum of Understanding (MoU) with Advertising Standards Council of India (ASCI) to address the growing concern over illegal betting and gambling advertisements by offshore entities.

Key principles

Among the key principles mentioned in the framework are responsible gaming practices such as age-gating, comprehensive KYC mechanisms, and ensuring that platforms do not operate in restricted states where real-money games are not permitted.

Skill gaming platforms will also need to implement tools to identify and protect vulnerable and at-risk players by incorporating adequate safeguards. They also have to ensure proper management of player funds and data.

Additionally, operators will be required to uphold fair gaming practices, ensure accountability through clear internal policies and dispute resolution mechanisms.

They will also have to provide players with accurate and accessible information to help them make informed decisions, including options to self-exclude and set limits. Furthermore, responsible advertising and marketing guidelines will be enforced to prevent misleading promotions, the industry bodies said.

While the industry bodies will not mandate any specific technology solutions, operators will be encouraged to adopt technology-driven verification, authentication, and KYC mechanisms to improve consumer protection.

Members who don't comply with this framework may face a range of actions, from formal warnings to even expulsion in extreme cases, the industry bodies stated.

All India Gaming Federation CEO Roland Landers said, "This Code of Ethics reinforces our commitment to fair play, compliance with Indian laws, and fostering a secure and responsible gaming environment. Through collaboration with other industry federations, we are setting new benchmarks for ethical gaming, strengthening the credibility of India's online gaming sector, and building a sustainable, globally competitive ecosystem"

Neil Castelino, Director General of FIFS, said that by working together as an industry, the federations are setting a "unified standard that prioritises player well-being, integrity, and accountability across the industry. This we believe will be pivotal in ensuring a safe environment for the 24 crore fantasy sports users in the country."

Anuraag Saxena, CEO of EGF, stated that the interests of consumers, the industry, and the nation have all "suffered too long. Unethical gambling operators have been parasitically harming the nation, its exchequer, and its people"

"The adoption of these standards reinforces our commitment to accountability through third-party audits, responsible gaming policies, and ethical business practices" he said.

The Indian gaming industry reported revenues of $3.8 billion for the financial year 2024, a 22.6 percent growth from $3.1 billion in FY23, according to a report by the gaming and interactive media venture fund Lumikai. Of the $3.8 billion in revenue, about $2.4 billion came from the real-money gaming segment.

The report also said the sector is estimated to cross $9.2 billion in revenue by FY29 at a 20 percent CAGR over the next five years.