The Great India Online Gam(bl)e-How gambling disrupted online narrative

Great Indian Online Gam(ble)e

By K Yatish Rajawat

In the vast world of medical conditions, online gaming addiction is considered a given reality. Yet it remains under-recognized by the Indian government and its policymakers. The World Health Organization (WHO) has given due acknowledgment to the addictive nature of online gaming. However, not only has it been left unchecked in India, online gaming has mutated and morphed into online gambling, adversely impacting the nation's younger generation.

The convergence of gaming and gambling not only jeopardizes the mental and physical health of our future generation, it also steals their most productive asset–their attention. Meanwhile, lobbyists for online gaming and gambling have been fooling the country, labeling their activities as a sport and pledging to self-regulate. To check against their potential harm to future generations, however, this exponentially growing ecosystem requires tighter regulation and control involving inputs from multiple stakeholders including clinical psychologists, behavioral economists, and think tanks.

In India, the distinction between online gaming and gambling has blurred. The two platforms, once distinct, have now converged. Gaming-gambling convergence in terms of social casino gaming, loot boxes, skin betting, esports betting, play-to-earn video gaming and plain vanilla stakes for games. Recognized as a disease, addiction to online gaming or gambling has surged due to the platforms' increasing popularity, sparking numerous issues stemming from excessive participation. The 11th revision of the International Classification of Diseases, published in 2019, defined 'gaming disorder' for the first time, acknowledging both online and offline forms. Scientific studies have further confirmed that the addiction related to online gambling mirrors substance abuse. The Diagnostic and Statistical Manual of Mental Disorders fifth edition (DSM-5) even introduced a new category for non-substance behavioral addiction within the substance addictions category, accommodating online gaming and gambling addictions. Substance Abuse Disorders are addiction to cannabis, cocaine and heroin-like substances. Numbers for India are not available as none of these platforms share data of users with the government.

South Korea is often cited as an example of online addiction. The socioeconomic loss due to excessive Internet use in the Republic of Korea was estimated at between 1.5 and 4.5 billion US dollars in 2009 (Lee, Kim, & Lee, 2011). Online gaming has been identified as the largest health problem experienced by young people (Korea’s Ministry of Science, ICT and Future Planning, and the National Information Society Agency, 2015).

India’s online gaming predominantly involves gambling. Lobbyists often attempt to depict it as sport, obscuring the reality with disinformation campaigns about these as involving skill and distanced from gambling as game of chance. Surprisingly, both retired and serving policymakers appear to be going along with this narrative, with many of them considering self-regulation for these companies rather than recognizing the inherent risks and challenges associated.

Imagine experiencing a fresh spin on the acclaimed crime series, Narcos. In a dramatic plot twist, the Colombian cartel is urged by the US government to self-regulate–a scenario improbable in reality, one might assume. Yet, we witness an eerily parallel scenario in the world of online gaming.

This imitative panorama of the online gaming industry, alarmingly, isn't being recognized in India as online gambling despite every game being played for stakes. Advocates within the sector sermonize about ‘responsible gaming’, an echo of the 'responsible gambling' mantra. Even online platforms have jumped onto this bandwagon, touting their 'responsible acts'.

Figures of trust, including ex-bureaucrats, judges, lawyers, and the media, along with numerous columnists, have been co-opted into this advocacy. With a blase of brazenness, they argue that online gaming platforms can, indeed, behave responsibly. Given the audacity and indifference demonstrated in such advocacy, opinion platforms in the credible media should insist these commentators fully disclose their affiliations with the online gaming lobby. Only then can the reader discern the true motives behind their arguments, enabling them to grasp the stark reality of this debate.

Returning to the Colombian cartel analogy, it's as if they have pledged to distribute cocaine responsibly, ensuring that no one receives enough to become an addict. Further leaving us a gasp, they guarantee to cap prices to prevent resulting addictions from leading to crimes like theft and burglary, despite the demonstrated plausibility of money laundering on online gaming platforms. The entire online gambling industry, it seems, is ready to make these outlandish promises with their hands on the sacred idol of Mahadev.

It is surprising how gullible the regulator can be, wait a second there is no regulator. Oh, but wasn’t there talk about appointing a self-regulatory organization for the sector? Many self-defined organisations applied but nobody was finally selected and the government is now thinking about regulating them directly. The crucial question therefore is what will be regulated and how will it be regulated.

Will online gaming be regulated as gambling companies, sporting companies entertainment companies, or just internet intermediaries? The policymakers ought to have learned by now that tech platforms are masters on how to avoid any form of regulation. Examples besides online gaming include social media, E-commerce, communication apps, and several super apps that now manipulate the market in several sectors.

The most straightforward path to regulation is initially licensing these companies, as is customary for gaming or casino businesses–since they ultimately share similarities. The lingering dilemma among policymakers is identifying who will "bell this cat" and call out the problem in its true nature. The crux of this quandary lies in the abundance of money involved.

Unregulated purse or pool collections occur daily for these companies. Noticing this,? the Ministry of Finance smartly brought these collections under the GST net. Despite this, however, the companies remain unregulated by any government department, as no licenses for operating online casinos or gaming currently exist. In contrast, worldwide licensing is commonplace for online gaming platforms.

Just this month, in December, China released draft norms to curb addiction on gaming platforms. Their ability to accomplish this feat hinges on their established licensing process for all online gaming platforms. Under China's online gaming approval system, companies must obtain an "Online Publishing Service License" to operate legally. Why not consider and learn from such established systems?

No doubt, China’s control over the internet is excessive by any benchmark; it has, nonetheless, managed to create an effective regulatory framework for online gaming that keeps addiction in check. Multiple scientific studies have confirmed the severity of addiction arising from these platforms. Prime Minister Narendra Modi has directly addressed this issue on several occasions in his radio dialogues.

Moreover, the ED, CBI, and RBI have highlighted the ways these platforms can be exploited. Chinese firms, in particular, are allegedly using online gaming as a means of laundering money from India. Yet, credit should be given where it's due: China's success in regulating online gaming could serve as a crucial lesson for India in addressing its related challenges.

The socio-economic costs of this addiction can effectively reduce the not just economic growth but also destroy a whole generation.

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