New Delhi
The Indian online gaming industry is preparing for the implementation of the Digital Personal Data Protection (DPDP) Act, 2023. Experts have suggested clarifications and possible exemptions for the industry, particularly regarding parental consent, handling children’s data, and compliance timelines. The DPDP Act, designed to be “digital by design,” will soon have rules announced.
The online gaming sector in India reached a market size of Rs 16,428 crore in 2023, employing over 1 lakh people and serving more than 425 million gamers. The All-India Game Developers’ Forum (AIGDF) partnered with the Indian Governance and Policy Project (IGAP) to analyze data protection compliance needs for various types of games, including ‘Free-to-Play,’ ‘Real-Money,’ and ‘Web3’ gaming.
Non-compliance with the DPDP Act could lead to penalties of up to Rs 250 crore ($30 million), increasing the pressure on Indian gaming companies to adhere to strict data protection standards. The Act introduces new obligations like detailed notice and consent requirements for companies processing personal data. The ‘Free-to-Play’ category, which often includes players under 18, is expected to face challenges, including parental consent and restrictions on targeted advertising and data processing.
While the impact on ‘Real-Money Games’ may be less severe, KYC processes could still be affected. Web3 gaming, involving digital avatars and blockchain, may also need further clarification from regulators under the new law.
