India's Gaming and Gambling Regulation: Current Developments and Challenges

India's gaming and gambling regulatory landscape is complex and evolving, with both central and state-level regulations playing crucial roles. Here are the key developments and challenges:

1. Central Regulations:

- Gaming Amendments: The Ministry of Electronics and Information Technology (MeitY) introduced amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, in April 2023. These

amendments aimed to establish a co-regulatory framework for online gaming, involving self-regulatory bodies (SRBs) to certify games.

- GST Implementation: A 28% Goods and Services Tax (GST) on the full value of the amount paid or payable to online gaming platforms was implemented starting October 1, 2023. This move has been controversial, with industry bodies and operators criticizing the high tax rate as potentially stifling the regulated market.

2. State-Level Regulations:

- State Laws: Each state in India has the authority to enact its own laws regarding betting and gambling. This has led to a fragmented regulatory landscape, with some states like Telangana banning all online games for stakes, while others are in the process of introducing their own regulations.

- Litigations: Various litigations are pending in the Supreme Court and High Courts, challenging the constitutional validity of the GST amendments and state laws. For example, petitions have been filed in the Allahabad High Court, Bombay High Court, and Gujarat High Court.

3. Challenges and Criticisms:

- High Tax Rate: The 28% GST rate is seen as excessively high, potentially driving operators out of the market and encouraging illegal gambling activities. International operators have expressed reluctance to invest in India due to the high tax rate.

- Illegal Gambling: The current regulatory framework is criticized for being inadequate, leading to a surge in illegal online gambling activities. A study by the Centre for Knowledge Sovereignty (CKS) suggests that the illegal betting market in India receives an estimated $100 billion per annum in deposits and is expected to grow at an annual rate of 30%.

- Need for Comprehensive Regulation: There is a call for a more comprehensive and coherent regulatory framework that balances consumer protection, industry growth, and regional diversity. Drawing from successful regulatory models in other countries, such as the US, could help India develop a more effective approach. 

In 2024, there are several esports scenes that, despite their potential and dedicated communities, remain underrated and fly under the radar of mainstream attention. Here are some notable examples:

Age of Empires

This real-time strategy game, once a dominant force in the genre, has a dedicated but smaller esports community. The game's competitive scene is robust, with a strong following and regular tournaments, but it does not receive the same level of attention as other strategy games like StarCraft or Warcraft III.

Quake Champions

This first-person shooter, part of the iconic Quake series, has seen a resurgence since its full release in 2022. Despite its positive reception and a growing competitive scene, it remains underrated. Quake Champions has pulled in significant viewership, with over 30,000 viewers at peak and a combined prize pool of nearly $4 million across various tournaments

Smite

While MOBAs like League of Legends and Dota 2 dominate the esports scene, Smite, released in 2014, offers a unique twist with its mythological heroes and divine skills. Although its popularity has waned over the years, the competitive scene remains active, with a total prize pool of over $11 million and peak viewership of over 134,000 for major tournaments like the Smite World Championship.

Super Smash Bros.

This long-running fighting game series has a robust and dedicated community, but its competitive scene is often overshadowed by other fighting games like Street Fighter, Tekken, and Mortal Kombat. Super Smash Bros. tournaments have pulled in significant viewership, with peaks over 245,000 and prize pools exceeding $4 million

Magic: The Gathering

Magic: The Gathering, a card game with a rich history, has a growing esports scene. While it is not as widely recognized as other esports titles, it has a dedicated fan base and significant prize pools. The game's transition to digital formats has helped in attracting new players and viewers to its competitive events

GeoGuessr

Although not a traditional esports game, GeoGuessr has gained traction as a competitive title. It involves players guessing locations on a map based on Google Street View images. While it may not fit the conventional mold of an esport, it has a unique and engaging competitive scene that is worth following

These games and their respective esports scenes offer exciting competitions and dedicated communities, but they often lack the mainstream recognition and large-scale audiences that more popular esports titles enjoy.

In summary, India's gaming and gambling regulation is at a critical juncture, with the need for a balanced and comprehensive framework that addresses the challenges of high tax rates, illegal gambling, and state-level regulatory disparities. A centralized regulatory framework with state autonomy, similar to the US model, could provide a more effective approach to regulating the iGaming industry in India.