Regulation For Online Tech Giants In India? Here’s Why Sushil Modi Needs To Be Taken Seriously

When Rajya Sabha member and senior BJP leader Sushil Kumar Modi demanded that the government regulate India’s online gaming industry along with the big tech companies in the country, many wondered if Modi is making a devious attempt to ostensibly control the thriving industry.

The online realm of India needs to be regulated: Modi

Speaking in the Rajya Sabha during the zero hour in December, Modi raised the need to create an independent regulatory body that will oversee the activities of Big Tech firms operating in India, including online gaming operators and service providers.

For the online gaming industry, the BJP lawmaker urged the government to “make a comprehensive framework of regulation for online gaming” as well as “bring a uniform tax” on the industry, saying, “Online gaming is becoming a big addiction. I would like to highlight that this sector, like the crypto industry, certainly has a regulatory lacuna.”

Studies have shown that the global online gambling industry has leveled up, especially during the coronavirus pandemic, which has changed many consumption patterns. Data from an ENV Media report on regulated gambling markets showed that India experienced a 35 percent increase in the number of real money games played on a monthly basis by an average user during the pandemic.

The increase in online gaming player volume puts India on the top spot ahead of Russia (30 percent), Indonesia (26 percent), Brazil (23 percent), United States (13 percent), United Kingdom (11 percent), Japan and China (7 percent each), Canada and Germany (6 percent each), South Korea (5 percent), and France (7 percent). That’s not surprising given the steady growth in the popularity of online casual entertainment games in India at the moment, where more and more people are opting to play roulette casino online in the safety of their homes.

India online gaming industry needs comprehensive regulation, uniform tax

At the rate it’s going, there’s no stopping the growth that online gaming is experiencing right now in India. The question that remains is how India’s government can fully harness these wins as more people are opting to play casino online and utilize it to boost the country’s economy.

Right now, it is up to the state governments to come up with their own ways of governing this nascent industry. But this has proven not to work, given that state officials are opting for blanket bans on online gaming instead of coming up with a comprehensive regulation that can effectively oversee the sector and protect all the stakeholders.

In the midst of all this back-and-forth between governments and industry stakeholders, Modi is the voice of reason—and his call needs to be taken seriously. The former Deputy Chief Minister of Bihar who also functioned as Bihar’s finance minister for 13 years, Modi is known to be meticulous in thought and action. But more than that, Modi’s call for a comprehensive online regulation is important for the country so that other countries can’t take advantage of India’s thriving gaming market.

India is still considered an emerging market, and it stands to benefit the most by employing locally regulated permits that will ensure that the government has more control of the regulation and law enforcement, while also safeguarding the consumers’ well-being. ENV Media analysts explained it best in their report, saying:

“India is a particularly emblematic case of similarly impending regulatory needs. The prohibition of betting is widely seen to have been ineffective. In such contexts, certain authority recommendations cannot be overlooked. Emerging markets (India in particular but not only) will benefit from creating their own Central regulatory framework, a Gambling oversight body, and a Consumer Data protection regulation.”

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