IT Secretary clears air on gaming ban, shines light on what lies ahead

The Indian gaming industry is at a crossroads, following the recent legislation that has banned online money gaming. IT Secretary S Krishnan has, however, suggested that the outlook for the sector may not be as bleak as some industry players have claimed.

In an interview to The Times of India’s Pankaj Doval, Krishnan argued that significant growth opportunities exist in social gaming and e-sports, which are ripe for development.

Krishnan firmly rejected the notion that the ban has dealt a devastating blow to the industry. Instead, he views the new legislation as a means to bring much-needed clarity and structure to a sector that has long been characterised by ambiguity.

Industry stakeholders had previously voiced concerns about the lack of regulatory framework, which, according to Krishnan, has now been addressed through the establishment of a proper authority.

Krishnan highlighted the importance of recognising that money gaming, while significant, is not the only component of the gaming landscape. E-sports and social gaming represent substantial segments of the market that have been overlooked in the discussion surrounding the ban.

The IT secretary emphasised that the focus should shift away from the perceived financial losses of gaming companies to the social implications of gambling addiction. He pointed out that approximately 45 crore people in India engage in online money games, with serious consequences for many families affected by addiction and financial ruin.

The decision to prohibit online money gaming was not taken lightly, Krishnan said. According to him, the decision was only taken after consensus emerged across the political spectrum, with numerous parliamentarians raising concerns about the impact of these games on citizens.

The government, he argued, has prioritised the welfare of families over the financial interests of a few companies. While acknowledging that job losses may ensue from the ban, Krishnan expressed confidence that those affected will be able to find new employment opportunities in a growing economy.

In response to allegations that the ban signals a government stance against entrepreneurship, Krishnan insisted that this is a mischaracterisation. He pointed to various government initiatives aimed at fostering tech entrepreneurship, including support for AI development and other innovative projects.

The implication is clear: the government is committed to nurturing entrepreneurship, but not at the expense of public welfare, Krishnan said.

Through the move, concerns about illicit activities associated with online money games were also addressed, he said. While he acknowledged that not all companies engage in such practices, he referenced reports from the financial intelligence unit and national security agencies that indicate suspicious transactions linked to this sector.

This suggests that the government’s actions are rooted in a broader concern for national security and the integrity of the financial system, the IT Secretary noted.