On December 12, a bill “On activities for the development and distribution of video games in the Russian Federation” was submitted to the State Duma. The authors of the bill believe that the bill will ensure the psychological safety of children from the negative impact of video games, as well as support the gaming industry. There has been a lot of talk about regulating the gaming market in recent years, but mainly about labeling video games. The new bill brought other issues to the agenda.
What does the bill regulate?
Experts estimate the volume of the Russian video game market for 2024 at 187 billion rubles. The spending of Russian gamers on computer and mobile products amounted to more than 170 billion rubles at the end of 2024, which is 7.5% more than in 2023. Strategy Partners predicts growth by 2030 to 250 billion rubles.
As expected, the state wants to take control of the lucrative gaming market. This is clear even from how the directions for regulating the development and distribution of video games indicated in the bill are indicated:
- definition of developer support measures;
- establishing requirements for the distribution of video games in the Russian Federation;
- exercising state control (supervision) over the distribution of video games.
The main emphasis is placed on the introduction of restrictions and rules for market participants.
What are the organizers of video game distribution platforms obliged to do?
The bill also introduced the concepts of video games, gaming property, video game distribution service, organizer of video game distribution service, video game distributor. The organizers of the video game distribution service are those who determine the procedure for using such services, including the procedure for placing video games and (or) game property on the service.
Among the responsibilities of the organizers there are:
- provide technical capability for video game distributors, inform users about video game content;
- post their data on the service website, contact information for feedback;
- post on the service website the rules for its use;
- if the service has the ability to make payments on the territory of the Russian Federation, ensure its implementation.
If you do not comply with the requirements, the service will not be able to distribute video games.
What requirements should video game publishers meet?
Video game distributors (game publishers) are holders of the exclusive right to a video game or have the right to distribute it in the Russian Federation.
Distributors are also obliged to:
1. exclude the availability of information prohibited in the Russian Federation for users;
2. ensure the labeling of video games as information products;
3. ensure that users are informed about the specifics of its content;
4. if the video game has the ability to make payments:
- publish the rules for making payments, including the procedure for returning funds, as well as the procedure for resolving disputes in the Russian Federation;
- ensure the possibility of making payments through Russian services.
One more requirement is imposed on both organizers and distributors – on the localization of personal data of citizens of the Russian Federation on the territory of the Russian Federation. Considering that most of the major market players are foreign companies, its implementation is difficult. Russian courts periodically fine foreign players from other areas for large sums for refusing to localize. Many of them are fined repeatedly, but this does not stimulate the majority to transfer their databases to the territory of the Russian Federation. How they will be “forced” in this case is still unclear.
How will users be informed about the content of the games?
The procedure for marking games, the development of the markers (descriptors) themselves and other details that were discussed last year by members of the Association of Professionals in the Game Operation and Development Industry (APRIORI) and the Organization for the Development of the Video Game Industry are not specified in the bill.
The government should determine:
- procedure for informing users, including the procedure for applying a marker with the category of a video game and/or a text warning to limit the distribution of a video game;
- the ratio of such markers of video game categories to similar signs of categories from international video game labeling practice.
The bill defines the following categories of video games:
- depicting or describing cruelty, violence (except sexual violence) against people and animals, crimes;
- containing individual elements capable of causing fear, horror or panic, including scenes of humiliation in the form of non-violent death, illness, suicide, accident, accident or catastrophe;
- with an image or description of scenes of a sexual nature;
- with obscene language;
- with an image or description of the use of alcohol, tobacco products;
- with an image, mention or description of the use of drugs, psychotropic substances;
- with the possibility of in-game purchases;
- other categories to be determined by the Government.
Why do you need an examination here?
In order to identify in the video game information about the features of its content, an examination may be carried out. If the owners disagree with its results, they can challenge them in court.
IMPORTANT! An examination is not necessary to assign a category and label a video game before distributing it.
User identification
Video game distributors must identify authorized users. This is possible through a subscriber number or “State Services.” This requirement has become, perhaps, one of the discussed and controversial among the participants in the gaming market. Although APRIORI believes that many digital services are interested in integration with “State Services,” as they allow solving many difficulties in establishing the proper party to the contract and the age of the audience. Perhaps this is relevant for other areas, but how ready are gamers for this? Judging by the heated discussions, the complete deanonymization of the participants is not encouraging.
Distribution control
Control measures will be carried out by the appropriate authority. It has the right to request the necessary information from publishers and video game stores, as well as other persons. And they are obliged to provide it within 15 working days. If violations are revealed, the inspected persons are given a period of at least thirty working days to eliminate them.
Industry support measures
Support measures are spelled out formally and in general:
- funding for video game development;
- organization of training of specialists in the development of video games, support for educational programs for developers;
- conducting research and analysis on video games;
- providing video game developers with tax and fee benefits.
This section is one of the problematic points of the bill. In fact, there is no talk of any real measures to support participants in the gaming market. It turns out that somebody really wants to start collecting money from the industry right now, and how it will develop further is not so important.
What can the gaming market expect from innovations?
In the current edition, restrictions are sensitive primarily for foreign developers or for those Russian companies that have not yet taken care of data localization.
Another stumbling block is the issue of authorization. And the problem is not only that foreign companies will not meet the requirements of Russian legislation – there is a risk that domestic developers (which are already severely limited in other countries) may receive a mirror answer abroad.
Obviously, the text of the bill will undergo changes before adoption. It is necessary to clarify the very procedure for labeling, conducting examinations and, of course, support measures. For further development, the gaming market needs, first of all, real support measures, and not new restrictions and impracticable requirements.
By Karina Margaryan, Senior IT Lawyer, RTM Group