PLAYER CLAIMS
of games offered via app stores have a loot box. 19 Most countries (excluding Germany and Australia) 20 do not consider the presence of loot boxes when determining the age rating of a game, underplaying the effect a loot box offering has on a minor. Perhaps more concerningly, loot boxes are also infamous in certain jurisdictions for their deceptive and addictive design and for circumventing parental controls vis-à-vis monetary transactions being undertaken by children. In India, while loot boxes are not specifically regulated, the extant subject-matter laws create a reasonable governance framework. Under gambling laws for example, they remain arguably excluded from the definition of “gambling”, subject to an inherent inability to transfer or trade loot box items for monetary value. Even under India’s recently enacted federal law on gaming i.e., PROG Act, games monetising through loot boxes are likely to face scrutiny only for being in the prohibited class of “online money games” or considered for mandatory certification as an “online social game” by the government. Traditional consumer protection principles against misleading declarations, dark patterns and unfair trade practices, also obligate publishers to keep their game design non- deceptive and transparent. The legality of loot boxes and allied monetisation mechanics under Indian laws depends on multiple factors including the presence of deposits, the nature or real-world value of the rewards, etc. Although, now more than ever, their offering and the overall game design is likely to face greater scrutiny from the government, especially when they are being offered to minors. Global
best practices like disclosing the probability of receiving a reward, displaying prices in Indian Rupees (and not in-game currencies), and providing transparent information about the rewards will help publishers to demonstrate their bona fides. With the growing policy push towards child-safety in the country, stakeholders should consider the creation of separate child- specific versions of their game or adopt an age- neutral game design for its entire userbase. Both approaches are going to be arduous tasks and should be considered with due regard to their effectiveness and protection against non- compliance of regulatory requirements. Conclusion With India’s position as one of the largest global gaming markets, developers and studios intending to offer their titles in India must strive to adapt them to the distinct regulatory expectations flagged above. On many fronts such as procuring VPC and restrictions on behavioural monitoring, the Indian framework appears to be stricter than global regimes. Thus, offerings otherwise compliant with global frameworks would need to be re-assessed for their compliance posture under Indian laws. For global game developers, studios, and publishers assessing India as a market, the path to compliance is not merely a legal checkbox but a product-design imperative. On this front, the measures outlined in this article are intended to serve as a practical starting point for stakeholders to align their offerings with India’s evolving regulatory expectations, whilst continuing to deliver engaging and responsible gaming experiences.
RANJANA ADHIKARI Partner, Shardul Amarchand Mangaldas & Co For more information contact ranjana.adhikari@AMSShardul. com +91 22 49335555.
SARTHAK DOSHI Principal Associate, Shardul Amarchand Mangaldas & Co
PRATEEK JOINWAL Associate, Shardul Amarchand Mangaldas & Co
19 Leon Xiao, supra n(xi) 20 Jugendschutzgesetz (JuSchG) [Protection of Young Persons Act] (Germany), s 10b(3); Guidelines for the Classifi- cation of Computer Games 2023 (Cth) (Australia).
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IMGL MAGAZINE | SEPTEMBER 2026
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