Facebook parent Meta is changing its authorisation process for real money gaming (RMG) companies seeking to advertise in India, introducing an additional certification step to make the process more rigorous, Moneycontrol has learnt.
This move comes at a time when India continues to lack a central regulatory framework for the burgeoning sector, which is currently navigating a turbulent period.
Following this change, advertisers will be required to submit a certificate from one of the country's skill gaming industry bodies — the All India Gaming Federation (AIGF), the Federation of Indian Fantasy Sports (FIFS), or the E-Gaming Federation (EGF) — or provide a court order confirming the nature of the game as a 'game of skill'.
That said, it's worth noting that Meta has not made any changes to its online gambling and games policy, which has long permitted RMG companies to advertise their offerings. Companies that intend to run these ads will need to request permission from Meta by filling out an application form.
As reported by Moneycontrol earlier, Meta's gambling policy does not permit all real-money gaming and gambling formats in the application form, and the permitted formats vary based on the territory the advertiser targets. For instance, Karnataka allows ads related only to fantasy sports and skill-based games, while Nagaland also allows ads for poker and lottery and Meghalaya allows sports betting and Bingo ads. States like Assam, Andhra Pradesh, Odisha and Telangana prohibit all such ads.
Meta defines online gambling and games as any product or service where anything of monetary value is included as part of a method of entry and prize. This monetary value can include, but is not limited to, cash or digital currencies like Bitcoin. This includes real-money gaming formats such as fantasy sports and skill-based games such as online rummy and poker. Meta declined to comment on the development. Moneycontrol has also reached out to AIGF, FIFS, and EGF and will update the story once a response is received.
In a memo to its members, AIGF stated that this change came after "nearly two years of sustained efforts and continuous engagement" with the social networking giant. It also stated that the move "marks a major step forward in streamlining the ad approval process for RMG operators in India"
A detailed process is expected to be shared with AIGF members in the next couple of weeks, the skill gaming industry body said in the memo.
In March, AIGF, EGF, and the FIFS had announced that it has jointly signed a ‘Code of Ethics’, aimed at enforcing consistent user safety standards across the industry.
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.
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.
These federations also signed a Memorandum of Understanding (MoU) with Advertising Standards Council of India (ASCI) in February to address the growing concern over illegal betting and gambling advertisements by offshore entities.
Roland Landers, CEO of AIGF, welcomed Meta's move stating that it is a "major step forward in aligning global platform policy with India’s regulatory and legal realities"
"It ensures that only authorized, responsible operators can access Meta’s ad inventory while protecting users especially minors from exposure to unregulated gaming content...For nearly a decade, we have run the most exhaustive voluntary skill game certification process in the country, rooted in legal validation and integrity" Landers stated.
He further added “This milestone reflects the impact of sustained industry platform dialogue and positions India’s legitimate gaming sector for more responsible and structured growth in digital advertising environments."
Anuraag Saxena, CEO, E-Gaming Federation (EGF), stated that the measure "highlights the crucial role that credible organizations in the online gaming industry play in ensuring legal and ethical standards"
"We have long advocated for these changes to bring greater accountability to digital advertising. Our collaboration with ASCI, including the establishment of a dedicated monitoring cell, aims to identify and report illegal offshore betting ads while reinforcing higher compliance standards" he said.
These collective efforts will lead to a "cleaner, more transparent digital advertising environment", Saxena added.
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. The government is now reportedly in the early stages of formulating a unified legal framework to regulate the sector.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
