The Online Rummy Federation (TORF), an independent body that acts as a self-regulator for the gaming industry, said the State government should set up a committee to review, discuss and propose a regulatory framework for games of skill, similar to Nagaland and Sikkim.
“TORF will be keen to provide its full support to the government in creating a safe and responsible gaming industry. In the absence of regulation, and in case of any prohibitive action that doesn’t draw a clear line between legitimate skill gaming and illegitimate operators, the government will unintentionally elevate the problem it is trying to solve by encouraging uncontrolled illegal online gaming,” Sameer Barde, CEO of the federation, said.
He explained that every single jurisdiction in the world that had chosen prohibitive measures has had to deal with a large underground economy.
“A case in point is the recent ₹1,500 crore gambling scam in Telangana which surfaced after it chose to ban skill gaming in 2017,” Mr. Barde said.
On recent deaths
Commenting on the recent suicides related to online gaming, Mr. Barde said, “These events are of grave concern to TORF and its members. TORF members have taken extraordinary and voluntary steps to self-regulate and give players the tools to play responsibly. On the other hand, there has been a major uptick in the proliferation of illegal gambling sites that do not follow the strict TORF standards of regulation. This combined with the pandemic, which has exacerbated problems of social isolation, are some factors that have contributed significantly to the recent unfortunate events.”
Ballpark estimates provided by companies in the online rummy space show that there are over two lakh registered rummy players from the State (playing on legitimate sites).
Of this, more than 70% of are frequent players who, on average, spend anywhere between ₹200 to ₹500 on the game, in a day. The number of new players from the State is increasing every day, and after the lockdown, online rummy sites have seen an uptick in registrations from the State.
Game of skill
Deepak Gullapalli, CEO of Ace2Three, said, “This is a game of skill and there are people from Tamil Nadu who have participated and even won tournaments.”
He pointed out that during the pandemic, many illegal sites had mushroomed and that was where people had lost money.
His firm has around 17-18 million players across India.
Another big player in the online gaming space, who wished anonymity, said the government’s decision would give space for illegal players to thrive, creating more problems. He added, “The State government should first understand how the industry operates and then take a call. Players have an option to play free or for cash, so it’s the player who decides on the bet.”
The founder of an online gaming company said his firm cautions players about the game’s pros and cons. “It's the consumer’s decision and it’s not forced upon them,” he said, adding that the games are also played offline, in clubs, apartments and many other places, illegally, for big money.
According to estimates, in India, the growth in online rummy is about 30% compound annual growth rate (CAGR), with a market size of about ₹3,000 crore. This growth is mainly attributed to the ever-increasing smartphone penetration, affordable data, cultural shifts and a wide choice of games for players to pick from. The online rummy industry is estimated to grow at 25%, and reach $0.5 billion by 2022.
