Securities and Exchange Board of India Reviews Online Gaming Regulation

Securities and Exchange Board of India Reviews Online Gaming Regulation

The Securities and Exchange Board of India (SEBI) is analyzing the effects of the Promotion and Regulation of Online Gaming Act, 2025 (PROGA) on the gaming landscape. This law imposes a controversial ban on online money games, suggesting that money is inherently a corrupting influence.

Examining Fundamental Rights and Free Speech

Critics argue that PROGA infringes on individuals' fundamental rights, particularly the right to engage in skill-based online games with money. They suggest that, while PROGA aims to protect the youth from potential addiction and financial distress, it overlooks the distinction between games of skill and pure chance.

Arguments for Regulation Over Banning

SEBI's perspective calls for a more regulated approach rather than an absolute prohibition. Just as stock trading has set regulations to protect investors, similar rules for online gaming could mitigate risks without hindering the industry’s growth. This could include age verification, mandatory registration, and strict advertising regulations.

Addressing State and Central Authority

The debate also extends to the constitutional authority for regulating online gaming, questioning whether it falls under state jurisdiction. Experiences from international rulings, such as the US Supreme Court's decision on sports betting, present a complex backdrop for India's PROGA.

A Path Forward for Online Gaming

While PROGA seeks to address societal concerns related to online gaming, its sweeping limitations may not effectively serve the public interest. A balanced approach promoting both regulation and responsible gaming could transform the sector positively.

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