Is an SEBI-like Regulatory Body the Key to Growth in India’s Online Sports Gaming Industry? Dream Sports CEO Harsh Jain Thinks So
India’s online sports-based gaming industry has seen a surge in recent years, and there is a growing belief that adequate regulation is crucial for its growth. Harsh Jain, CEO of Dream Sports—the parent company of Dream11—has called for a Securities and Exchange Board of India (SEBI)-like regulatory body to oversee the real-money gaming (RMG) sector, in an effort to bring clarity and encourage innovation.
Jain drew parallels between the RMG sector and the stock market, emphasizing the potential benefits of a regulatory body in ensuring smooth governance and providing guidelines on permissible and restricted activities. In a recent event held in Bengaluru, Karnataka, Jain stated, “The Government has appointed the IT ministry (MeitY) as the ‘Nodal Ministry’ for the gaming (sector), which is going to pass regulations sometime soon. That will help expedite innovation in sports and sports engagement, because we will have not just the legality but also a regulated way in which we can have a SEBI.”
He further added, “Gaming will finally have a body, which can regulate what we can and cannot do in sports to help the sports fan engage with the game in an official manner and allow that to grow even further.”
The Ministry of Electronics and Information Technology (MeitY) has already notified the formation of self-regulatory organization(s) for the online gaming sector. Despite recent amendments, the matter has remained pending.
A newly-formed group of ministers (GoM), comprising top ministers like Amit Shah, Nirmala Sitharaman, Ashwini Vaishnaw, and Anurag Thakur, is likely to discuss online gaming on December 15, possibly announcing much-awaited SROs. This development could potentially address Jain’s concerns in the coming weeks.
It is anticipated that the formation of an SRO would benefit the Real Gaming Money (RMG) industry. Companies are already seeking clarity on their operations, with some facing challenges related to GST notices from the Directorate General for GST Int.
However, some industry insiders express concerns over potential drawbacks of a SEBI-like regulatory body. They cite possible overregulation, which could stifle growth and innovation in the sector.
“It is important for any regulation to strike a balance between maintaining the integrity of the industry and promoting its growth,” said Ravi Iyer, Co-Founder and CEO of an Indian sports-tech company. “An overregulated environment could hamper the potential of the online sports-based gaming sector in India. It’s important that regulation allows for the growth and innovation that this sector has experienced in recent years.”
The SEBI model has demonstrated effective and transparent regulation of the stock exchange in India since 1992. If applied prudently to the RMG sector, it could foster growth, innovation, and trust among players, while mitigating risks.
As the online sports gaming industry awaits the GoM’s decision, industry stakeholders hope that the proposed regulations will be flexible and growth-oriented, ensuring the maintenance of a transparent, safe, and thriving gaming ecosystem in India.
