The origin of India’s online gaming industry can be dated back to the 2000s, when console and computer gaming brought several Indians on digital gaming platforms. The Indian gaming market is witnessing an unprecedented growth, fueled by various social, economic and technological factors. These factors when combined with appropriate controls could be key levers in driving the next phase of growth in the online gaming industry. Unprecedented growth in the online gaming sector has not only boosted the economy but has also presented certain threats to gaming intermediaries and other key players in the financial services sector (banks and other institutions onboarding gaming intermediaries as merchants). This includes potential threats of money laundering, terrorist financing, cyber security, ghost users, etc.
While organisations strive to build profitable ventures, compliance to laid down regulations is equally important. It is recommended that organisations ensure transparency in operations while keeping long term objectives in mind and frame policies accordingly. In conclusion, organisations can be better prepared to demonstrate compliance to regulations as regulators may come knocking their doors anytime.
A summary of key threats posed by online gaming are mentioned in this document in detail, please read KPMG in India’s Point of View document on Gaming Revolution to know more.