INDIA: India to establish organizations to regulating the internet gambling business

In response to growing concerns about people becoming addicted to games and businesses being disrupted by inconsistent state laws, the Indian government proposed the creation of a self-regulatory body that will regulate online gaming companies in its draught amendments to its information technology rules published on Monday.

The idea was made in response to a government panel's recommendation for new laws to control a market that Redseer Consulting estimates will be worth $7 billion by 2026.

Tiger Global and Sequoia Capital, two American investment firms, have recently supported the fantasy cricket-focused Indian startups Dream11 and Mobile Premier League.

The proposals for industry regulation come amid mounting concerns that the popularity of these games, particularly among young people, has contributed to addiction, financial losses, and even some recorded suicide cases.

Gaming companies would need government approval to register a self-regulation body, which would include a member nominated by the government and a member from the fields of psychology, medicine, or consumer education. The government member would have a background in public policy, public administration, law enforcement, or public finance.

Roland Landers, the CEO of the All India Gambling Federation, said: "We believe this is a wonderful first step for comprehensive regulation for online gaming and would hopefully lessen the state-wise regulatory fragmentation that was a huge barrier for the business."

The proposed modifications also suggest that businesses establish a chief compliance officer to oversee legal compliance and confirm users' identities prior to the creation of an online account enabling them to access the games.