NEW DELHI: Job creation, revenue generation, player protection, responsible gaming, curbing terrorism, and licensed gaming operators are some of the key benefits of implementing a regulatory framework for the online gaming industry in India, said various stakeholders during a knowledge session on Integrity in Sports organised by FICCI in association with AIGF (All India Gaming Federation). The AIGF is an apex body that focuses on policy advocacy, research and forum for discussion among various stakeholders associated with the online gaming industry.
The event saw guests like Dr. Shashi Tharoor, former justice Balbir Singh Chauhan, KTS Tulsi, and Bhaichung Bhutia amongst many others in a fireside chat about the benefits of a regulatory framework for the Online Gaming Industry.
The online gaming market has seen a tremendous growth. According to KPMG, revenues have nearly doubled over the last four years, reaching INR 43.8 billion in FY18 and is expected to grow further at a CAGR of 22.1 per cent from FY 18-23 to reach INR 118.8 billion. With the growth of the industry, sports betting has become highly popular, and although illegal, a huge market exists for the same. FICCI estimates online sports betting to be INR 300,000 crore industry, done illegally mainly through underground bookies or through several international websites.
David Foster, Head of Regulatory Affairs, GVC highlighted the importance of integrity in sports and stated, “Positive conduct by athletes, administrators, officials, supporters and other stakeholders, on and off the sporting arena is extremely important. This enhances the reputation and standing of the sporting contest and of sports overall.”
Senior parliament member, Shashi Tharoor said, “Long-term prognosis for sports and betting is bleak if corruption is not dealt with. While self-regulatory practices need to be followed by the industry, there is an urgent need to have a statutory framework with government oversight to ensure service providers are following license conditions to track suspicious betting patterns and to have some control over the money flow to curb the generation of black money.”
To try and offer a solution to this recurring phenomenon, Tharoor had introduced a Private Member’s Bill, titled the Sports (Online Gaming and Prevention of Fraud) Bill in the lower house of parliament on 28th December, 2018. Sharing insights on the bill Tharoor said, “In a nutshell, my legislation seeks to introduce an effective administration to protect the integrity of sports by preventing and penalising sports fraud, while at the same time regulating the online market for sports betting. “
Expressing his views, former Indian footballer Bhaichung Bhutia said, “Regularizing the industry will lead to revenue generation for the state, which should be further used in development of the sports industry. I am thankful to AIGF & FICCI to start a discussion around this and hope that the government will see this as an opportunity to support the sports industry.”
Summing up the event, All India Gaming Federation, CEO, Roland Landers said, “With the proliferation of sports leagues and the development of the sports ecosystem in India, it has become a major source of commerce and revenue for many entities, especially in the field of betting or gaming in connection with sporting events. Though each Indian state have their own Gaming Acts, what is ideally required is a Central regulation.”
Landers further pointed out the benefits of a regulatory framework for the Online Gaming Industry and stated the following:
• Job Creation – The Gaming Industry is responsible for the creation of around 7000 direct and 3000 indirect jobs in the States of Goa and Sikkim. In addition, indirect employment will be generated from the ancillary telecommunications, marketing, financial, banking, and real estate sectors. Based on the above figures, we can extrapolate that the Online Gaming Industry, if regulated, will create lakhs of direct and indirect jobs nationally.
• Revenue Generation – As per a FICCI report in 2015, the Indian sports betting industry will contribute in the excess of INR 19,000 crores in tax revenues to the Government.
• Technology & Player Protection – The Gaming Industry is driven by robust technology that ensures all processes are above board, player data is systematically collected for only legitimate players to participate while protecting the underage as well as to keep out those from financially weak backgrounds from being impacted.
• Responsible Gaming – Responsible gaming policies will curb addiction and protect the youth through enforcing regular audits, player age verification, and introducing responsible gaming guidelines for operators.
• Audited Systems -Technical and operational standards for gaming devices and systems will be prescribed. Additionally, independent organizations will be accredited to certify that operator’s processes adhere to regulatory standards. Finally, routine audits of gaming systems will be done by AIGF and leading independent audit firms.
• Curbing Terrorism – It has been proven that beyond doubt that the money derived from the prevalent illegal sports betting system fund cross border terrorism.
• Licensed Gaming Operators – The operators will be made to follow KYC norms, adhere to anti-money laundering (AML) provisions and defaulters will be penalized. Digital transactions will be verified and a regulatory requirement to train in AML policies and procedures will be imposed.
• Law and Enforcement drain – Authorities today are spending approximately 30% of their time trying to curb activities around illegal betting causing a huge drain of their resources.
