A New Chapter for Gaming in India: MeitY to Regulate RMG Sector

In a big decision for the gaming industry, the Indian government has decided to treat Real Money Gaming (RMG) and video gaming as two separate industries. This move addresses the long-standing demand to recognize the differences between gaming for entertainment and pay-to-play games involving real money. 

What’s Changing? 
The government announced that these two industries will now have separate oversight: 
- Video Gaming: Games focused on entertainment and storytelling will be managed by the Ministry of Information and Broadcasting (MIB). This aligns them with other creative industries like films and OTT platforms.  

- Real Money Gaming: Games where users pay to play and win real money will come under the Ministry of Electronics and Information Technology (MeitY). This is because RMG platforms rely more on technology and financial transactions. 

Why This Matters 
The separation allows each industry to grow with policies tailored to its specific needs. Developers say it will help reduce confusion and allow the video gaming industry to focus on being a creative force.  

Manish Agarwal, a board member of the Game Developers Association of India (GDAI),
said: “This separation was necessary. Video gaming is about creativity and content, so it fits well with MIB. Real Money Gaming, which deals with transactions, is better suited for MeitY.”  

The Need for More Talent

While gaming is growing in India, there is a shortage of professionals in this field. India has only 25,000 game developers, compared to 6 million worldwide. 

To address this gap, industry leaders have urged the government to: 
- Set up a game development school similar to IITs. 
- Add game development courses in colleges.  

Sridhar Muppidi, Chairperson of GDAI, said these steps could help India become a global leader in game development.  

FDI and Regulations 

The government is also working on a policy to allow 100% Foreign Direct Investment (FDI) in online gaming, excluding gambling and betting. NITI Aayog, India’s policy think tank, is helping create clear definitions for games of skill and chance, which is essential for drafting these policies.  

However, developers have warned against over-regulating the industry at this early stage, as it could slow down growth.  

What’s Next? 
This decision is expected to bring more investments and opportunities to both industries: 
- Video Gaming will grow as a creative and entertainment-driven sector. 
- Real Money Gaming will be more regulated to ensure user safety and fair practices. 

With the government’s support, the gaming industry in India is set to expand, creating jobs and putting the country on the global gaming map. This is an exciting time for game developers and players alike!  

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