Centre weighs single law for online gaming

Move to end maze of laws, bring clarity on taxation, attract investments

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The Centre plans to bring India's online gaming companies under a single regulatory framework, eliminating the patchwork of state-level laws that currently governs the sector, two people aware of the development said.

The home ministry has formed a committee comprising its officials, legal and policy experts and gaming industry executives to discuss the way forward, the people cited above said on the condition of anonymity.

Early discussions included whether a new law is required which would distinguish gaming from gambling, something that has remained contentious despite the Supreme Court terming online gaming as a game of skill, and gambling as a game of chance.

The government recognizes the sector's strong growth potential, one of the two people cited above said on the condition of anonymity. "The industry has also made multiple presentations showcasing its scope to draw foreign investments. To enable this, the Centre believes that a single law will be key in terms of regulatory clarity, and that it would also allow India's Financial Intelligence Unit (FIU) to crack down on offshore entitiessomething that the ministry of electronics and information technology (Meity)'s proposed self-regulatory body framework has so far failed to do," the person said on the condition of anonymity.

Queries sent to leading gaming companies Dreamll and Games24X7 remained unanswered.

Meity and MHA also did not immediately respond to Mint's queries.