The digital economy, specifically the online gaming sector, is experiencing remarkable growth, with the Indian Real Money Gaming (RMG) market emerging as a significant player globally.
The sector is projected to reach a revenue of USD 7.5 billion within the next five years, driven by a vibrant community of over 100 million daily gamers.
However, this growth also brings challenges related to financial integrity and the threat of money laundering.
A recent report by the Digital India Foundation emphasizes the need for robust measures to combat illegal operations in the gaming industry.
The report suggests the formation of a dedicated task force, the creation of a whitelist of legal entities, and the importance of public awareness and education.
Financial integrity, cybersecurity, and user protection are pressing challenges, with the illegal betting market in India attracting over USD 100 billion in deposits annually.
The use of in-game currencies, cryptocurrencies, and offshore betting platforms for illicit activities highlights the severity of the money laundering threat.
The report recommends the deployment of AI and machine learning-driven detection models by financial institutions, as well as the assessment of in-game assets to understand financial flows.
The Indian gaming sector has the potential to create approximately 250,000 jobs by 2025, impacting ancillary sectors such as fintech, cloud services, and cybersecurity.
However, the absence of a single supervisory or regulatory authority and the lack of uniform standards pose challenges.
A cohesive regulatory framework is needed to address the complexities of the digital economy.
By implementing the recommended measures, stakeholders can mitigate the risks associated with money laundering and other financial crimes, ensuring a secure and transparent environment for online gaming.
Ongoing collaboration and innovation will be crucial for the industry's future success.