New Delhi, Aug. 21 -- The government's decision to outlaw online games that require players to fork out money seems to go against a basic tenet of good governance: strict regulation is typically better than an outright ban. This is especially so in markets that not only exist, but also display demand that state action may be unable to stamp out.

A policy that prohibits such an activity runs the risk of sending it underground or overseas, making it much harder to monitor. Which, in turn, could spell even more grievous consequences. Yet, this does not mean that the Wild West air around India's online gaming industry should continue. Lawmakers could have intervened with a framework that includes strict age-gating rules, heavy 'sin' taxation...