The Lok Sabha has recently passed the 'Promotion and Regulation of Online Gaming Bill'. This bill could bring significant changes to online gaming platforms in India, especially those involving real money games and betting.
New Online Gaming Bill: The Lok Sabha recently passed the 'Promotion and Regulation of Online Gaming Bill'. This bill could bring about a major change in the digital gaming sector and sets strict rules for online gaming platforms. The main objective of the bill is to ban real money games and betting apps, while e-sports and social games are permitted.
With the implementation of this bill, online gaming platforms associated with cricket and IPL in India may also be affected. Experts say that the fantasy gaming and sponsorship market may be impacted due to the bill.
Main objective of the Online Gaming Bill
The purpose of the Online Gaming Bill is to create a legal framework for digital gaming and protect players from potential dangers. The bill clarifies that:
- Real money games and betting apps will be completely banned.
- E-sports and social games are permitted.
- Providing online money gaming or facilitating it may result in a 3-year jail sentence or a fine of ₹1 crore.
- The purpose of the bill has been brought in specifically keeping in mind the safety and mental health of the youth.
However, the impact of the bill will not only be on gaming companies, but also on advertising, sponsorships, and the fantasy gaming sector associated with cricket and IPL.
Impact on IPL and Fantasy Gaming
Dream11, the official fantasy sports partner of the Indian Premier League (IPL), recently entered into a new contract with online gaming platform My11Circle. The figures for IPL and fantasy gaming are as follows: Dream11, the title sponsor of the Indian cricket team, acquired the rights for approximately $44 million (approximately ₹358 crore).
My11Circle has purchased the fantasy gaming rights for IPL for 5 years for ₹628 crore (approximately ₹125 crore per year). India's top cricketers have also entered into agreements with gaming platforms at an individual level. With the implementation of the bill, it is unclear whether advertisements for fantasy gaming applications will continue or not. If players have received money for an advertisement and real money usage is involved, its financial and legal implications could be controversial.
What could be the impact?
- Decline in the fantasy gaming market – Revenues of platforms may decline due to the prohibition of real money games.
- IPL Sponsorship affected – Advertisements or sponsorships of some companies may be cancelled due to regulations.
- Individual agreements of players – The amount received by players from online gaming platforms may also be affected.
- Promotion of e-sports and social gaming – While real money games are prohibited, e-sports and social games are legally permitted, which may increase the potential for growth in these sectors.
Sports experts say that the popularity of cricket and IPL in India is so high that there will be no shortage of sponsorships. However, digital marketing and revenue models may be affected due to non-permission of advertising on individual fantasy gaming platforms.
