Ethics of Online Gaming

Introduction

Voluntary Code of Ethics for Online Gaming Intermediaries (OGI) has been issued as a Joint Declaration of the members of Digital Gaming Committee of the Internet and Mobile Association of India (IAMAI) in collaboration with the All India Gaming Federation (AIGF), E-Gaming Federation (EGF) and Federation of Indian Fantasy Sports (FIFS). 

About the Code of Ethics

• The code is voluntary in nature, meaning that it is not legally binding.
• Objectives: 
  • To protect interest of consumers and enable them to make informed choices about the online games they access.
  • To create a healthy environment for online games in India and ingrain a culture of responsible gaming in the country.
  • To elevate the industry standard and bring uniformity in the business practices of signatories.
• Key Provisions: Responsibilities of Online Gaming Intermediaries include:
  • Responsible Gaming: 
    • Provide users with access to information about responsible gaming and safety guidelines. 
    • Offer a self-exclusion feature, allowing players to willingly suspend their access for a chosen period. 
    • Utilize widely available advanced technology tools to monitor player behaviours. 
  • Age Gating (Safeguards for minors): Real money prizes shall not be offered to users below 18 years of age.
  • Fair Gaming: 
    • Draft and publish on their website and platform terms and conditions and privacy policy accurately specifying mechanics and rules of online games. 
    • OGIs offering real-money games will not offer any contest or game where platform directly or indirectly participate against users. 
  • Financial Safeguards:
    • Update KYC, implement controls and preventive measures to detect and prevent money laundering or other unlawful activities. 
    • Not allowing financial transactions through unauthorized payment systems. 
  • Responsible Advertising:
    • Fair and truthful advertisement, not inducing minors, containing necessary disclaimers and warnings. 
    • Not promoting online gaming as an alternative to employment.
  • Safe, Secure and Reliable Gaming:
    • Process and store digital personal and non-personal data in compliance with applicable data protection laws, and
    • Recognize and integrate evidence-based best practices for safer gaming.

Key Stakeholders

Ethical concerns with Online Gaming

• Gaming vs. Gambling: Often there are concerns with online gaming platforms promoting gambling.
  • Gaming involves skill-based activities, strategic thinking, and immersive experiences, while gambling entails wagering money on uncertain outcomes with chance playing a critical role. 
• Privacy concerns: Online gaming platforms meticulously track player actions and interactions, profiling player behaviour while also providing personalized experience. 
  • Such data also includes personal sensitive data such as name, age, banking details etc. which raises concerns regarding person’s privacy, data consent and surveillance boundaries. 
• Fair play: Real money game outcomes can be manipulated by malicious actors undermining the integrity of competitions and financial loss to users. 
• User protection: Instances of disruptive behaviours like harassment, cheating, bullying, identity theft and abuse. 
  • There are also apprehensions over offshore betting apps masquerading as online games and the potential for money laundering posed by players in the sector.
• Accountability: There have been instances of emergence of online games undertaking unfair practices and promoting addiction, wagering, or user harm. 
  • Gaming companies indulge in misleading advertisements, which can be detrimental to user well-being. 
• Virtue ethics: Also, in-game characters’ traits displayed in action influences players’ ethical decision-making in real life. 

Regulatory Framework for Gaming in India

• Distinction in Games: Under Indian law, games of skill are generally considered legal, while games of chance are considered illegal. This legal distinction is based on the degree to which skill versus chance influences the outcome of the game.
  • Rummy, Horse Raccing, Poker and Fantasy Sports are often considered Games of Skill while Casino Games, Lotteries and Betting are often considered Games of Chance. 
• Constitutional Provision: Courts recognized skill gaming as a protected activity under Article 19(1)(g) of the Constitution, which guarantees the freedom to practice any profession or carry on any occupation. 
  • Seventh Schedule of Constitution empowers each state in India to enact laws related to "betting and gambling", resulting in varying regulations across states. 
    • For instance, Telangana and Andhra Pradesh have prohibited all online games, eliminating the exemptions for games of skill. 
    • However, Sikkim and Nagaland have established licensing systems for various online games. 
• Online Gaming Rules: Ministry of Electronics and Information Technology has established a central legal framework for online gaming via amendments to the Information Technology, Intermediary Guidelines and Digital Media Ethics Code Rules, 2021.
  • These rules aim to prevent gambling, user harm, and money laundering, especially in case of access to “online real-money games” to the public. 
• Digital Personal Data Protection (DPDP) Act, 2023: It aims to safeguard individual privacy and regulate data processing. 
• Consumer Protection Act, 2019: It also applies to online gaming in India and protect consumers’ rights to safety, be informed, seek redressal, be heard, and choose.

Way Forward

• Privacy ethics and data protection: Provide data anonymization and encryption techniques to safeguard player identities and personal information.
  • Also, adhere to data minimization and provide users comprehensive control over their data with mandatory consent requirement for personal data collection. 
• Responsible gaming: Proactive measures and educational initiatives are essential, emphasising collaborative efforts among industry stakeholders, regulators, and advocacy groups.
• Self-regulation: Imposing self-regulation within gaming companies is crucial in addressing these challenges. The aspects of self-regulation can include:
  • Identity and age verification, coupled with robust Know Your Customer (KYC) protocols.
  • Counselling support, player support services, time constraints on gaming sessions etc. 
  • Regular audits and identifying at-risk players by positive monitoring of player behaviour. 
• Anti-money laundering regulations: These should include enhanced due diligence for high-risk consumers, use of geolocation services in verification of physical location for financial transaction and sources of funds verification.