Union Cabinet delegates administrative authority for online gaming to MEITY
- ByStartupStory | December 27, 2022
The Union Cabinet delegated administrative authority for the ‘online gaming’ industry to the Ministry of Electronics and Information Technology (MEITY) on Monday. This effectively establishes the union government’s ability to regulate betting and gambling sites (although these services cannot be classified as such legally under Indian law due to various court judgements).
The Allocation of Business Rules, which outline which ministry is responsible for what, have been amended to assign MEITY “matters relating to online gaming,” and “e-Sports as part of multi-sports events” to the Department of Sports.
States have attempted to limit the activities of so-called “real money gaming” operators, who use that label to run platforms where poker, rummy, and other such games can be played for money. However, because betting and gambling are considered a state subject under the Indian Constitution, and real money gaming operators on the internet have won legal battles to avoid being labeled as such, attempts to regulate the space have frequently failed.
An inter-ministerial task force has suggested that online gaming be centrally regulated. The union government reportedly wrote a letter to all states’ top bureaucrats, asking them to repeal the Public Gambling Act of 1867 for gambling alone and put in place a fresh law.
It is unclear whether the union will have much influence over the industry. The Group of Ministers tasked with determining a GST rate for online gaming platforms has reached a stalemate, and efforts to impose a 28% tax on winnings from such platforms have stalled.
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