The Need for Judicious Regulations in Gaming

A governing body is required to classify games based on whether they involve skill or chance.

Since 1957, it has been the law in India that a game of skill does not constitute gambling. Despite the fact that the law has been reiterated numerous times by various courts, there is still a grey area in determining whether a game involves skill or chance, and there are no standard parameters to decide. As a result, the deciding factor is subjective, and the outcome may be random.

Although the degree of "mind application" and "options available to the players," among other factors, are all relevant in determining the percentage of skill involved in playing a game, a unified and standard test has yet to be produced, either in judicial pronouncements or from the legislature. Regulations are still governed by statutes enacted in the twentieth century, to which temporary patchwork solutions for modern needs are affected through amendments.

However, such a patchwork of statutes, which did not even foresee the extent to which the internet would develop, were enacted prior to the advent of cyberspace, and it is insufficient to meet the needs of both the industry and the general public. This necessitates the adoption of new and progressive regulations, rather than imposing a blanket ban on these games.

State governments have exclusive power to enact laws on betting and gambling

State governments have sole authority to enact laws governing betting and gambling. However, online gaming transcends state lines, and any state regulation may be unconstitutional. The gap, on the other hand, is in the realm of online gambling.

There is no central legislation that governs the issue of online gambling. As a result, the need of the hour is to enact legislation that thoughtfully protects the interests of the industry and the end user. Prudent regulations can help the industry, as even a game of chance, if properly regulated, can be considered a game of entertainment.

However, as previously stated, the online gaming market is not limited by geography. The entire goal of the online gaming industry is to connect people who would otherwise be geographically separated and enable them to play with/against each other.

Divergent laws enacted by individual states will only restrict the trade, resulting in a hindrance to the overall potential of the online gaming industry when the industry itself is dependent on catering to people from different territories and has a need to enable a platform for them to play with one another.

A regulatory body can be established to determine matters

This issue is exacerbated by the fact that laws governing online gambling span the entire spectrum, from permitting it to outright prohibiting it. As a result, it is imperative that progressive legislation be enacted, with proper regulations, keeping in mind the global nature of cyberspace in gaming.

A regulatory body can be established to certify the nature of games and impose appropriate regulations to protect the end user's interests. The competent certification authority can determine whether the game is one of skill or chance, making regulation easier.

As a statutory authority, the public will always be able to challenge the certification decision as well as the authority's rules and guidelines. Such an exercise will enable a system of transparency and accountability, both on the service provider's and the public's side.

Such a framework would allow for regulated online gaming, which would ensure that no type of game falls under the purview of gambling, thereby protecting the interests of the gaming industry, end users, and the general public.

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