Regulation
Regulation
The charter includes a number of provisions designed to protect consumers. For instance, it prohibits signees from offering and promoting real-money wagering on games of chance to players partaking in games of skill.
It also introduces detailed guidance across a range of areas which directly impact on the user experience and its relationship to consumer protection. It obliges operators to maintain separate bank accounts for operations costs and user funds, as well as conducting verification checks ahead of player payouts.
And most encouragingly, it introduces extensive rulings around responsible gaming. These include a requirement for operators to allow users to set daily, weekly and monthly deposit limits. It also requires operators to put into place‘ time out’ and self-exclusion protocols.
Finally, it offers detailed guidance on poker, rummy and daily fantasy sports, covering a range of technical areas to ensure the games are offered in a responsible fashion.
Setting an example Operators must lead from the front on responsible gaming, rather than reacting to public pressure. If you look at the FOBT debate in the UK, and the long list of heavy fines handed down to operators by the UK Gambling Commission for breaching marketing and player protection rules, it is clear that public perception of the gambling industry has suffered as a result.
While the journey towards a full regulatory framework for the Indian igaming market is a slow one, this gives operators an opportunity to take the initiative and learn from the mistakes of others elsewhere.
By displaying a willingness to self-regulate and act responsibly, it should also encourage legislators to steer clear of introducing regulation that strangles the igaming market at the outset.
Towards a regulated future Of course, this is only a small step on a longer journey towards the full regulation of India’ s igaming market. As already mentioned, progress has been slow, but there are encouraging signs that the country will make smart choices to create a sustainable sector like with the recent Law Commission’ s report and the AIGF initiatives.
While the AIGF framework is an innovative approach to the lack of formal regulation, ultimately enforceable rules will need to be introduced. It would be advisable for lawmakers to follow the lead of the AIGF in consulting with other regulators, such as the Alderney Gambling Control Commission( AGCC), when drafting its framework.
“ The question we need to be asking
is how to balance the nuances of a regulatory framework
in a country the size and scale of India”
The AIGF standards are not enforceable at the federal or provincial level, but the AGCC provides a model for an Indian regulator to introduce many of the provisions already laid out in a way that is enforceable.
As ever, the collaborative approach is the best. Working with experts, other regulators and bodies such as the International Association of Gaming Regulators will give India a significant head-start and hopefully speed up the process.
Around the world there has already been a huge amount of work done in ensuring harm is minimised in the gambling industry and that consumers remain safe and protected. India must draw upon this expertise if it wants to ensure the very highest standards for its consumers. To achieve this there are several international initiatives, such as the multi-jurisdictional testing framework that looks to harmonise technical standards, to which it can turn.
It is fantastic to see jurisdictions such as India, the US and many others acknowledging that regulating online gaming is the best way to protect consumers. But the battle has not been won yet. Governments, operators, regulators and other stakeholders still have a huge task ahead to introduce regulation that safeguards the customer.
In many respects, the debate over exactly what should be classified as a game of skill in India is not the priority. Led by organisations such as the AIGF, the challenge now is to ensure consumers in India and elsewhere are protected, regardless of whether they are playing a game of skill or a game of chance.
iGamingBusiness | Issue 111 | July / August 2018 129