Dream11 parent Dream Sports’ CEO Harsh Jain drew similarities between stock market and fantasy gaming in a recent event. Jain said that a SEBI-like regulator will be beneficial for smooth governance of the real-money gaming (RMG) sector. It is to be noted that SEBI controls the regulations and operations of the stock exchange in India since its formation back in 1992.
Harsh Jain feels that a similar regulatory body will be able to provide clarity on what is allowed and what is prohibited. In the event held in Bengaluru, Karnataka, Jain opined that a regulator will bring innovation in sports. Additionally, Jain also believes that it will increase the amount of engagement in sports.
“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,” Jain said Moneycontrol.
“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,” he added.
The Ministry of Electronics and Information Technology (MeitY) notified the formation of self-regulatory organisation(s) for online gaming sector. It announced the formation after making amendments to the IT Act, 2021, however, the matter has been pending ever since.
GoM likely to discuss online gaming sector on December 15
A recent report revealed that a new group of ministers (GoM) has been formed which will discuss online gaming soon. The group consists of prominent ministers like Amit Shah, Nirmala Sitharaman, Ashwini Vaishnaw and Anurag Thakur.
The GoM is likely to hold a meeting on December 15 and may finally announce the much-awaited SROs. And thus, Harsh Jain’s concern may finally be addressed in the coming weeks.
An SRO is expected to beneficial for the RMG industry, as the companies are already seeking clarity on their operations. In fact, some firms are also facing struggles related to GST notices from the Directorate General for GST Intelligence (DGGI). This became common after implementation of the new GST rates on online gaming activities.
Harsh Jain’s Dream11 was among the first gaming firms that were handed a GST showcause notice by the DGGI. As of now, the company has filed a petition against the GST notice at Bombay High Court.