New Delhi: The department of consumer affairs (DoCA) has decided to withdraw from framing guidelines for e-gaming and cancelled a planned study for protecting the growing number of online gamers, two people aware of the developmen said, after draft rules were issued by the ministry of electronics and information technology (MeitY).
Bengaluru’s National Institute of Mental Health and Neurosciences (Nimhans) was to conduct the study on “disruptive impulse control behavioural patterns of online gaming that may cause vulnerabilities,” with the plan to notify new rules after the completion of the detailed pan-India study.
The study, which was planned during the tenure of former consumer affairs secretary Rohit Kumar Singh, was set to cost the department ₹20 crore, with funds to be allocated to Nimhans.
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This comes in the backdrop of MeitY issuing draft rules for e-gaming, with the Centre of the view that sufficient reference studies on the impact of online gaming are available from other countries.
“There are enough studies and research papers available that can be utilized for preparing the guidelines. MeitY is working on it in a very positive manner, and there should not be any duplicity of work,” one of the two persons mentioned above said.
As per the plan, the findings of the research were to be used to frame guidelines for protecting consumers in online gaming. The report was also supposed to assist the industry in ensuring the optimal use of technology to minimize risks.
“Recent studies highlight e-gaming addiction, the nature of which is distinct in the case of skill-based esports and real money gaming (RMG). This requires separate policies and more insight into the matter,” said Ashish Shrivastava, co-founder and chief operating officer of Glazer Games, an esports company.
Justifying the cancellation of the study, the second person said, “It’s a well-known fact that e-gaming creates addiction, and research on youth and children has also established this fact. References can be taken from studies conducted by reputable institutions around the world, as human behaviour in relation to games in India is quite similar to that in other countries.”
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Spending ₹20 crore on such a study was not worthwhile, especially when another line ministry is already in the process of finalizing the norms, this person said.
“Gaming has today rapidly evolved and grown both in opportunities and challenges. However, concerns about gaming addiction are important but cannot rely solely on merely existing studies,” said Chandrahas Panigrahi, co-founder and chief executive officer of Lets Game Now, an esports portal.
“The e-gaming dynamics are changing, and continuous research is needed in order to be fully aware of the different age groups and gaming formats that may be affected,” Panigrahi said.
As per a report by Grant Thornton Bharat and the E-Gaming Federation (EGF), India is the second-largest gaming market in the world, following China, with 442 million gamers.
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Over the past five years, the Indian gaming sector has raised a total of $2.8 billion from both domestic and global investors, with the RMG segment being identified as one of the primary revenue drivers.
However, a recent study by Mordor Intelligence stated that India’s gaming market size is estimated at $3.49 billion in 2024, and is expected to reach $7.24 billion by 2029, growing at a compounded annual growth rate of 15.68% during the forecast period (2024-2029).