Technology has grown by leaps and bounds in the past two decades. Gone are the days of slow internet speed and a limited number of activities that could be pursued online. Today, the whole paper-based ecosystem has been transferred to its digitalized form. With this digitalization has emerged a new sector in the entertainment industry: Online Fantasy Sports. Several platforms were released in the last year with some making big hit in the news as well.
In recent wake of events, Indian government’s think tank body Niti Aayog brought forward some changes in its regulations with reference to the Future Fantasy Sports & Skill Gaming sector. Let’s delve deep in the issue and understand it in a better fashion.
What is the issue?
In the December month of 2020, Indian government took acknowledgement of OFS sector through Niti Aayog. At a point when the industry of online real-time money-based gaming is booming, placing it under tight regulations would have harmed the sector’s growth. Hence, prompt action from the government has been made and further events are yet to disclose.
What is Niti Aayog? Why is their say crucial in this matter?
Niti Aayog is the official policy think tank body for the government of India. Commonly used as an acronym for National Institution for Transforming India. This implies that they formulate policies and decisions pertaining to general citizens of the country on a ground level and suggest the same to be implemented by officials of higher authority. Their interference in this matter was crucial as the online gaming sector has been growing well and may respond better if it is supported to develop ahead in a uniform manner. Startups will find a chance to fight against the leading giants of the market.
What are Future fantasy sports & skill gaming?
Such future fantasy sports are based on probability and estimation-based skill gaming. It should not be confused with luck-based games, but the gameplay requires the player to make calculated moves that deliver results favoring the more skilled move played.
What is the change in regulations?
Since the modus operandi of these genre of games is not based on luck or chance, they were ineligible to fall under the previously laid guidelines for prohibiting gambling among public. Therefore, new provisions have been made and the existence of such ‘games of skill’ have found place in the legal perspective.
Why did this take place?
The recent popularization of OFS platform, Dream11, being the major sponsor in the IPL tournament, created buzz among people. Easy access to digital infrastructure, affordable and economic availability of smartphones, and cheap cost of data, combined with a reliable internet connection has led to the growth of this sector. In reference to previous incidents around the country, several states such as Andhra Pradesh, Assam, Odisha, along with many more, have banned the practice of online real-money gaming. There has been visible discrepancy between definition of OFS platforms and gambling, hence the matter was crucial.
The government had to put the sector in control before illegal gambling or betting practices started taking place. Therefore, guidelines were planned and proposed to streamline the process and safeguard the customers.
What are the possible effects?
In coming months or years, it is feasible to predict that a self-regulating body that monitors the functioning of such OFS platforms get created and is put under control of the government directly. With establishment of such a body, industry could welcome experts from around the world to suggest the board members about boosting the sector’s online presence and growth. This act would therefore, provide the industry with a much-needed stability and credibility for potential investors. It is even possible that such pay & play game formats become inaccessible to people below 18 years of age, who require adult supervision.
What is the scope for this industry in future?
The future for skill gaming and online Fantasy Sports Development look promising. With backing of government, the sector will invite investors from around the world. Employment for both technical and non-technical roles will shoot up. Requirement for a better infrastructure will force companies to hire a skilled workforce, that will eventually benefit the employees. Putting a strong and streamlined process for functioning of these platforms will ensure that they grow further and aid in generating profitable returns to the system.
It is only a matter of time and we shall watch the industry making its wide presence pan country soon!