Government proposes new IT rules to regulate online gaming

NEW DELHI:  In a bid to clear the ambiguity surrounding the regulatory purview over online gaming companies, the government on Monday released a set of draft rules that proposes a self-regulatory mechanism, mandatory verification of players and physical Indian addresses for online gaming companies. 

The online gaming firms will fall under the new IT rules that were issued in 2021 for social media platforms.

The final draft is expected in February following consultation from all stakeholders. “These rules are expected to shape future of India’s online gaming industry in the country,” said Minister of State for Electronics and IT (Meity) Rajeev Chandrasekhar. The minister, while explaining the law, said the online games that offer winnings, any game that allows wagering on the outcome is effectively a no-go area. “If you bet on the outcome of a game it is prohibited under 3(1)b under 10,” he added.

 The Centre recently appointed MeitY as the nodal ministry for matters relating to online gaming with monetary risks. As per the proposed law, the online gaming intermediary will have to display a demonstrable and visible mark of registration on all online games registered by the self-regulatory body. They will need to inform the risk of financial loss and addiction associated with these online games.

The intermediary, at the time of commencement of a user account-based relationship for an online game, identifies the user and verifies his identity.  There will be a grievance officer, who will coordinate with law enforcement agencies and their officers to ensure compliance with their orders or requisitions made in accordance with any law for the time being in force.

“We believe this is a great step for comprehensive regulation for online gaming and will hopefully reduce the state-wise regulatory fragmentation that was a big challenge for the industry. These rules will also be a start in curbing the menace of anti-national and illegal offshore gambling platforms,” said Roland Landers, CEO, All India Gaming Federation.

Game-changing rules

•   Draft says online gaming companies will fall under the new IT rules 
•   Final draft expected in February following consultation from all stakeholders
•   As per the proposed law, the online gaming intermediary will have to display a demonstrable and visible mark of registration on all online games registered by the self-regulatory body

Centre recently appointed MeitY as nodal ministry for matters relating to online gaming with monetary risks