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New ‘Skill Games Framework’ Introduced To Regulate & Enhance Online Real Money Gaming Industry

The Skill Games Framework, has been unveiled as “An Objective Framework to Determine Permissible Online Real Money Games” and was developed by the statistician Professor (Dr.) Bimal Roy in collaboration with The Dialogue.

| Published on October 16, 2024

New ‘Skill Games Framework’ Introduced To Regulate & Enhance Online Real Money Gaming Industry

A comprehensive approach to classify online games as skill-based, through a scientific and data driven method, The Skill Games Framework, has been launched as “An Objective Framework to Determine Permissible Online Real Money Games”.

It was developed by the statistician Professor (Dr.) Bimal Roy in collaboration with The Dialogue, and as per the company this marks a significant step in regulating the country’s booming online gaming market.

This initiative is the product of extensive engagement and consultation with industry experts, game developers, legal advisors, gamers, making it a collaborative effort.

As per the company, the report published by The Dialogue is the first version of the framework, which plans to continuously evolve based on further feedback from the industry, the government and emerging trends in the gaming industry so that it remains a dynamic and reliable tool for determining the legality of online real-money games in India.

At the heart of the Framework are three core tests designed to determine the role of skill in game outcomes. First, ‘persistence of skill’ which analyses whether top players consistently perform better over time, indicating that the game relies on skill.

Next, an ‘experience gap’ that measures whether experienced players regularly outperform other players, demonstrating that skill significantly affects performance. Lastly, ‘exemplary skill’ which identifies individuals with outstanding performance, underscoring the role of skill in determining success.

These tests are supported by advanced statistical tools such as the Chi-Square Test and Pearson Correlation Test. The framework leverages real-world data to ensure accuracy, consistency, and adaptability across various online gaming formats.

The Framework aims to revolutionise the online gaming landscape by providing a clear, consistent, and statistically valid approach to game classification. The blend of legal insights and statistical precision offers a trustworthy method for assessing games promoting fairness, transparency, and integrity in India’s online real-money gaming sector.

As India’s gaming industry continues its rapid growth, the Framework also aims to play a role in regulating the space, ensuring that only games grounded in skill are legally permitted.

Furthermore, the framework’s ongoing development will ensure it remains responsive to industry needs, with future updates reflecting feedback from all stakeholders, the company clarified.

As per the company, until now, India has lacked an industry-wide standardised mechanism to differentiate between skill-based and chance-based games. While court rulings have classified certain games and have laid down a qualitative test, there has been no consistent scientific test for game classification. The Framework addresses this gap by offering an objective, transparent, data-backed solution that regulators, developers and the judiciary can trust. By doing so, it ensures that legitimate skill-based games are appropriately classified, protecting both the integrity of the gaming market and the interests of players.

Speaking on the release of the framework, Professor Roy said, “In a world where online gaming is rapidly evolving, regulatory clarity is paramount. The Framework offers not just a solution for today’s challenges but a foundation for the future of gaming regulation in India. This initiative will provide the confidence that all stakeholders- players, regulators, and developers – need to thrive in a fair and regulated environment. Our goal is to empower both regulators and developers with a tool that champions fairness and ensures that skill-based gaming thrives under a transparent, data-driven system.”

Further, Kazim Rizvi, Founding Director, The Dialogue, said, “The launch of the Framework marks an important moment for India’s online gaming landscape, which provides a method to empirically classify games of skill. This objective and scientifically validated approach will help regulators distinguish between games of skill and chance, provide guidance to the developers, and subsequently help safeguard players’ interests. It offers the much-needed protection against misleading game classifications and unfair practices, ensuring that players engage in legitimate, skill-based games. We are thankful to have worked alongside Dr. Bimal Roy and other stakeholders to make this a reality.”

To this, Kriti Singh, Chief of Staff and Programme Manager of Gaming Policy, The Dialogue, said, “Our framework has three key objectives: First, it extends the existing jurisprudence by offering a quantitative method to distinguish between games of skill and games of chance, allowing for a more precise and objective determination. Second, it serves as a tool to differentiate legitimate platforms from illegitimate ones, ensuring fair competition and consumer protection. Third, it aims to establish an industry standard that can be widely adopted, fostering trust and credibility in the sector.”

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