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In a significant boost for the video gaming industry, the Indian government has decided to separate Real Money Gaming (RMG) from the video gaming sector. The longstanding demand to differentiate between entertainment-focused gaming and pay-to-play gaming has finally been addressed. This move aims to enable the government to develop more targeted and effective policies for both the RMG and video gaming industries.

Sanjay Jaju, Secretary of the Ministry of Information and Broadcasting (MIB), addressed key concerns of game developers during a closed-door roundtable at the 16th edition of the India Game Developer Conference (IGDC). Speaking to Storyboard18, developers present at the session confirmed, "The government has decided to distinctly separate the RMG industry from the video gaming sector. The Secretary clarified that video games designed for entertainment and content will fall under the jurisdiction of the MIB."

Another developer added, "The RMG industry will be overseen by the Ministry of Electronics and Information Technology (MeitY). The Secretary emphasized that the government understands these are two fundamentally different industries and cannot be regulated in the same manner."

<strong>Manish Agarwal, Board Member of the Game Developers Association of India</strong>, remarked, "This bifurcation was inevitable. The video gaming and interactive entertainment industry thrives on creative content. As the MIB Secretary pointed out, entertainment is central to this industry. Therefore, it naturally aligns with MIB, which also governs other entertainment sectors like OTT platforms, movies, and radio."

Agarwal continued, "In contrast, the RMG industry operates on a cash-in, cash-out model, which leans more toward technology and app-based transactions rather than deep, narrative-driven content. It's logical for MeitY to oversee this sector, with distinct regulations for each industry."

Developers also urged the government to support education and training initiatives in game development at premier institutions in India.

<strong>Sridhar Muppidi, Chairperson of the Game Developers Association of India</strong>, stated, "India has only 25,000 game developers compared to 6 million globally. Despite a large number of gamers, we lack the talent pool to capitalize on this opportunity."

Muppidi added, "We’ve requested the government to establish a game development school on par with IITs and to introduce game development courses in colleges. This could address the immediate talent gap by incorporating game development into top-tier educational institutions."

He also cautioned, "The government should avoid imposing restrictive regulations on the nascent gaming industry. Over-regulation at this stage could stifle growth. Once the industry matures, regulatory frameworks can be revisited."

Earlier, on September 6, Storyboard18 reported that the Department for Promotion of Industry and Internal Trade (DPIIT) had sent a letter to MIB, MeitY, and NITI Aayog seeking clarity on distinguishing between games of skill and games of chance. This distinction is crucial for drafting a policy formalizing 100% Foreign Direct Investment (FDI) in online gaming.

The proposed policy would permit full FDI in online real-money gaming, provided the investments exclude betting or gambling activities. NITI Aayog, India's premier policy think tank, is working to establish these definitions to ensure a robust long-term framework for the gaming ecosystem.

Read more: <a href="https://www.storyboard18.com/how-it-works/small-part-of-prasar-bharati-ott-will-be-subscription-based-rest-all-free-mibs-sanjay-jaju-47312.htm">Small part of Prasar Bharati OTT will be subscription-based; rest all free, says MIB's Sanjay Jaju</a>


EXCLUSIVE: India’s gaming industry gets clarity, RMG sector to be regulated by MeitY

The Delhi High Court will hear petitions challenging the constitutionality of the IT Rules, 2021, at 2.30 PM on Monday. Approximately 17 petitions have been filed across India by individuals, associations, and organizations. The petitions were filed citing government's control on social media services, video streaming platforms and digital news outlets. 

On August 14, 2024, the Delhi High Court directed that the cases be categorized by issue and appointed Advocates Shashank Mishra and Kirtiman Singh as nodal counsels for the petitioners and respondents, respectively. The court also instructed all parties to complete pleadings within four weeks and submit written arguments.

During the October 14, 2024, hearing, the Bench, with the consensus of all counsels, decided to split the hearings into two parts: first addressing challenges to Part III of the IT Rules, 2021, and then challenges to Part II. The IT Rules, 2021, which significantly impact online privacy and freedom of expression by granting the government broad authority over digital platforms, are being challenged on constitutional grounds.

It was decided that proceedings would begin with arguments against Part III (Code of Ethics and Procedure and Safeguards in Relation to Digital Media) and then move to Part II (Due Diligence by Intermediaries and Grievance Redressal Mechanism). Arguments on Part III will commence on November 11, 2024, led by Senior Advocate Darius Khambata, followed by other counsel. Arguments against Part II will be heard afterward.

The Ministry of Electronics and Information Technology, along with the Ministry of Information and Broadcasting, introduced the IT Rules, 2021, on February 25, 2021. These rules expand government oversight over social media intermediaries, including content shared by users. Additionally, they bring online content and digital news media under the jurisdiction of a government-appointed committee.

Since the notification of the IT Rules, 2021, at least 17 separate constitutional challenges have been filed in various High Courts across the country by individuals, associations, and organizations.

Delhi HC to hear petitions challenging constitutionality of IT Rules

The Indian Computer Emergency Response Team (CERT-In), part of the Ministry of Electronics and Information Technology (MeitY), is currently testing anti-deepfake technology to combat the malicious use of Artificial Intelligence (AI) in scamming unsuspecting individuals. Recently, Sunil Bharti Mittal, Chairman of Bharti Enterprises, shared a shocking account of an AI-driven scam that targeted his company.

At the NVIDIA AI Summit in Mumbai, a source familiar with CERT-In’s efforts confirmed that the agency is actively testing this anti-deepfake technology. “The technology will not only detect deepfakes but will also support prosecution of such offenders in a court of law.”

Referring to the Airtel Chairman’s experience, the source added, “The software can detect fake audio as well as video, which will aid in combating fake news that stirs public alarm. MeitY immediately takes down such videos in collaboration with social media intermediaries.”

One recent case involved SP Oswal, Chairman of Vardhman Group, who lost ₹7 crore after scammers, posing as government officials and using fake documents along with virtual settings, persuaded him to transfer funds.

The Election Commission expressed serious concerns about Deepfake AI and warned of strict action against those spreading fake narratives. Chief Election Commissioner Rajiv Kumar warned of strict measures against those using Artificial Intelligence and deepfakes to spread misinformation about elections. 

In December 2023, CERT-In issued an advisory informing citizens about the rising use of AI and deepfake technology by scammers. According to the advisory, scammers harvest social media profiles and other websites to gather videos, photos, and other personal details, then create convincing deepfakes that mimic real voices and faces of the victims’ friends or family. These deepfakes are used in schemes like fake kidnapping or ransom calls, creating urgency to coerce victims into sending money, often in the form of gift cards or cryptocurrency.

In November 2023, Minister of Information and Broadcasting Ashwini Vaishnaw announced that the government would begin drafting regulations specifically for deepfakes. After consultations with multiple stakeholders and platforms, Vaishnaw stated, “We will start drafting the regulations today, and very soon, we will have specific regulations for deepfakes.”

These forthcoming regulations are anticipated to include penalties for creating or sharing deepfakes and may also establish guidelines to help users identify deepfake content.

Additionally, Google has partnered with the Election Commission of India (ECI) to share crucial voting information via Google Search and YouTube. Google also announced its support of Shakti, The India Election Fact-Checking Collective, and joined the Coalition for Content Provenance and Authenticity (C2PA) as a steering committee member. C2PA is a global standards organization dedicated to certifying the authenticity of digital content.

Meta, in collaboration with the Misinformation Combat Alliance (MCA), launched a dedicated WhatsApp helpline to tackle AI-driven misinformation, particularly deepfakes. Furthering its consumer education efforts, Meta also rolled out initiatives like the ‘Know What’s Real’ campaign on WhatsApp and Instagram to educate users on recognizing and reporting suspicious content.

MeitY's CERT-In trials anti-deepfake tech to combat AI-driven scams

The Ministry of Information and Broadcasting (MIB) has referred the Direct-to-Mobile (D2M) broadcasting proposal to a committee of secretaries. According to sources, this committee includes representatives from the Department of Telecommunications (DoT), Ministry of Electronics and Information Technology (MeitY), Department of Space (DoS), and MIB. Initially, the D2M broadcasting proposal was intended to go directly to the cabinet.

Direct-to-Mobile is a broadcasting technology that enables users to receive multimedia content on their phones without an internet connection, similar to FM radio, where signals are transmitted and received by a device’s receiver. The government plans to roll-out D2M nationwide especially in tier II and III cities. 

Prasar Bharati, in partnership with IIT Kanpur and Saankhya Labs (Tejas Networks), is currently testing D2M technology in over 19 cities in India. This technology could allow the government to broadcast content in areas lacking internet connectivity, focusing on educational programming and emergency broadcasts.

Telecommunications companies have voiced opposition to the D2M initiative, citing potential business losses in video consumption, one of India’s fastest-growing market. However, the Telecom Regulatory Authority of India (TRAI) has supported D2M technology as a means to expand digital terrestrial broadcasting, allowing it to coexist alongside cable and satellite.

The MIB has strongly advocated for D2M, highlighting that, of the 280 million households in India, only 190 million have a television, leaving the rest “TV Dark.” In contrast, there are approximately 800 million smartphone users and 250 million feature phone users in the country.

“The MIB had initially planned to present the D2M proposal directly to the cabinet but has since chosen to recommend it to the committee of secretaries instead. Notably, no telecom stakeholders are part of this committee. MIB is still not convinced on the D2M proposal and will seek response from the committee for further plan of action,” said a source close to the development.

“D2M technology will allow broadcasters to extend their reach to even the most remote parts of the country. However, it’s crucial to determine how the government plans to implement D2M technology nationwide,” the source added.

Sanjay Jaju, Secretary of the MIB, recently discussed the benefits of Direct-to-Mobile (D2M) broadcasting, which enables content delivery directly to mobile devices. He noted that Prasar Bharati, in collaboration with IIT Kanpur and Saankhya Labs, is conducting trials with both high-power and low-power transmitters.

Anil Kumar Lahoti, Chairman of TRAI, highlighted the rapid growth in the Media & Entertainment sector, projected to reach ₹3.08 trillion by 2026, driven by the expansion of new media platforms. Lahoti emphasized that Direct-to-Mobile (D2M) broadcasting is becoming a viable alternative technology for content delivery, allowing simultaneous broadcasting without requiring internet connectivity.


EXCLUSIVE: MIB refers D2M broadcasting proposal to committee of secretaries

The Information Technology Ministry has come down heavily on social media platforms for allegedly abetting crime by not responding to hoax bomb threats. Over the past several days, more than 120 flights operated by Indian airlines have received bomb threats. As recently as yesterday, 30 flights from IndiGo, Vistara, and Air India were affected in New Delhi.

In a virtual meeting led by Joint Secretary Sanket S Bhondve, representatives from airlines and social media companies, including X and Meta, were questioned about their responses to the spread of false information.

Bhondve pointed out that the platform owned by Elon Musk was "abetting crime" by allowing these threats to spread unchecked.

The Ministry of Electronics and Information Technology urged social media platforms to take proactive measures against hoax bomb threats and emphasized the need for clearer takedown actions. In response to the 80 bomb threats received by Indian airlines in just two days, the government is planning legislative measures to punish the offenders.

The government is also considering amendments to the Suppression of Unlawful Acts against Safety of Civil Aviation Act (SUASCA), 1982. These amendments would allow arrests and investigations without a court order in cases where an aircraft is still on the ground. Proposed changes to aircraft security rules aim to introduce stricter penalties for individuals issuing bomb threats.

On October 22, Indian airlines faced a surge in bomb threats, with nearly 50 flights affected, bringing the total to around 80 incidents in two days. Airlines such as Air India and IndiGo each reported 13 impacted flights, while Akasa Air and Vistara reported over 12 and 11 affected flights, respectively. This follows 30 threats reported on the night of October 21, bringing the total number of bomb threats against Indian flights to over 170 within just over a week.

Airlines have confirmed that they are coordinating with local authorities and following safety protocols. Although the threats have been hoaxes, Civil Aviation Minister K Rammohan Naidu has stressed the gravity of the situation.
He assured that the government is addressing the situation while prioritizing passenger safety. He warned that those responsible for spreading hoaxes would face strict consequences, including placement on a no-fly list.

IT Ministry cracks its whip against Meta, X over flight bomb hoax cases

In an advisory issued on September 3, the Ministry of Electronics and Information Technology (MeitY) urged all intermediaries to promptly and proactively remove fake content, following a Bombay High Court directive. 

The HC required Meta, the parent company of Facebook, Instagram, and WhatsApp, and Telegram to delete all false information, including altered videos and profiles related to the National Stock Exchange (NSE), within 10 hours of receiving a complaint.

"The Ministry of Electronics and Information Technology wishes to remind intermediaries of their duty to swiftly remove any prohibited material at the earliest opportunity. Intermediaries are advised to complete the takedown process, where necessary, as proactively as possible without waiting for the time limits set in the Rules, which serve only as an upper threshold.”

The advisory referred to the Information Technology Act and the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. Under the IT Act, IT Rules 2021, and the 2015 Supreme Court ruling in the Shreya Singhal case, intermediaries are required to take down "unlawful information" within 36 hours of receiving "actual knowledge," either via a court order or a notice from the "Appropriate Government".

In July this year, India’s National Stock Exchange (NSE) warned investors about deepfake videos falsely featuring its CEO, Ashishkumar Chauhan, in some investment and stock advisory videos. 

Recently, the Mumbai police filed a case against the Maharashtra Youth Congress’ social media account and 16 others for allegedly sharing a deepfake video of Union Home Minister Amit Shah. Multiple well-known personalities, including Barack Obama, Nancy Pelosi, Elon Musk, Ukrainian President Volodymyr Zelenskyy, Tom Cruise, Scarlett Johansson, and Emma Watson, have also fallen victim to deepfake videos on the internet. Similar such cases have been reported widely across the country.


MeitY issues advisory to intermediaries, urges to remove fake content swiftly

Prime Minister Narendra Modi, during his Independence Day speech, urged India's youth to focus on creating world-class products, including semiconductors and gaming experiences. The Department for Promotion of Industry and Internal Trade (DPIIT) has now reached out to several central government departments seeking clarity on the definitions of skill-based and chance-based games. DPIIT is accelerating the process of drafting a 100 percent Foreign Direct Investment (FDI) policy for online gaming.

The letter, addressed to the Ministry of Information & Broadcasting (MIB), the Ministry of Electronics and Information Technology (MeitY), and Niti Aayog, seeks clarity on the definition of online gaming. Sources say that Niti Aayog, India's premier policy-making institution, is working on distinguishing the online gaming industry between games of skill and games of chance which would help build robust long term policy for the gaming ecosystem.

The proposed policy would permit full FDI in online real-money gaming, provided that the investments do not involve betting or gambling activities.

A source from the online gaming industry stated, "Following PM Modi’s speech addressing online gaming sector, DPIIT has now accelerated the process of drafting an FDI policy for online gaming. DPIIT aims to attract foreign investments into the gaming sector. This will benefit the online gaming ecosystem, but more importantly, it will bring much-needed clarity to the industry regarding the definition of online gaming."

Skill gaming platforms earlier paid 18 percent GST on the platform fees, also known as Gross Gaming Revenue (GGR). The new rules, which came into effect on October 1, 2023, does not make a distinction between games of skill or chance. The Real Money Gaming (RMG) industry, which is currently burdened by high taxes and is suffering due to infiltration of illegal offshore betting and gambling apps is expected to benefit significantly from the government's distinction between games of skill and chance further clarifying RMG players, lotteries and notorious offshore betting and gambling operators. Most importantly, the policy is expected to formalize 100 percent FDI in the online gaming sector.

It should be noted that while 100 percent FDI in online gaming is not explicitly prohibited, existing regulatory ambiguities have made it difficult for companies to secure banking and government clearances, deterring potential investors.

Another source from the RMG sector said, "The government should also consult with RMG stakeholders before finalizing the policy. The efforts of the government and the RMG industry should not be in vain but should benefit the entire RMG ecosystem."

However, it remains unclear whether this FDI policy will apply only to Real Money Gaming players or extend to other stakeholders, including casual gaming industry players, video game developers, and others.

In the Union Budget presented on July 23, 2024, the government committed to simplifying FDI rules and encouraging foreign investments, including promoting the use of the rupee in international transactions.

According to a report by Grant Thornton Bharat and the E-Gaming Federation (EGF), there are 442 million gamers, India is the second-largest gaming market in the world behind China. Over the last five years, the Indian gaming sector has raised a total of $2.8 billion from domestic and global investors, with the real money gaming (RMG) segment being one of the chief revenue drivers. The RMG sector continues to account for 83-84 percent of the revenue, with approximately 100 million online gamers daily, including 90 million paying to play.

PM Modi's I-Day speech spurs DPIIT to fast-track FDI policy for online gaming: EXCLUSIVE

Google is working with the Ministry of Electronics and IT's (MeitY's) Startup Hub to train and support 10,000 Indian startups in artificial intelligence (AI). The company will also provide up to $350,000 in Google Cloud credits for eligible startups to invest in the cloud infrastructure and computational power required for AI development and deployment.

The tech giant also announced that more than 1.5 million developers globally are using Gemini models. The announcement was made at the company's developer event, Google I/O Connect Bengaluru. This move by Google is part of the company’s strategy to tap into the rapidly growing artificial intelligence developer ecosystem in India, a crucial market for its global AI efforts.

As part of the initiative, Google is providing startups with AI-first programming and curriculum through its programs such as Appscale Academy and Startup School, helping them with skills, knowledge, and mentorship.

Google is also developing AI innovation programs to help the next generation of startups and developers solve real-world challenges. This includes a nationwide Gen AI Hackathon, a 3-month immersive experience in partnership with MeitY Startup Hub and Startup India, and the Solve for India Startup Bootcamp | AI Edition, to support early-stage startups tackling challenges across healthcare, climate change, agriculture, cybersecurity, and digital public infrastructure (DPI) using AI.

Additionally, Google will collaborate with the Open Network for Digital Commerce (ONDC), offering developers building for ONDC up to 90 percent off on select Google Maps Platform APIs.

MEITY