One of the biggest changes that will take place because of these rules, is that online games will now be legally divided in 2 categories - online real money games, where players will use their real , and online games.
One of the biggest changes that will take place because of these rules, is that online games will now be legally divided in 2 categories - online real money games, where players will use their real , and online games.
The Ministry of Electronics and Information Technology (MeitY) issued new guidelines for internet gambling on Thursday, outlawing any game that involves betting or wagering. The new regulations restrict any game that incorporates betting or wagering and include a system of various self-regulatory groups.
These SROs will be in charge of determining whether internet games are legal based on whether they allow wagering. According to the new guidelines, a “online game” is “a game that is offered on the internet and is accessible to a user through a computer resource or an intermediary.”
The IT Ministry enacted the IT Rules, 2023, which mandates the formation of a self-regulatory organisation for the registration and regulation of online gaming platforms as “intermediaries,” defined as those that “offer one or more than one online game.”
What are the new rules?
Rajeev Chandrasekhar, Minister of State for Information Technology, made the statement while speaking to media, stating that online games that entail wagering or betting will be subject to new online gaming guidelines. He also stated that there would be many SROs, with involvement from all stakeholders, including but not limited to the industry.
“Online game‟ from now on will mean a game that is offered on the Internet and is accessible by a user through a computer resource or an intermediary.
In this clause, “Internet‟ means the combination of computer facilities and electromagnetic transmission media, and related equipment and software, comprising the interconnected worldwide network of computer networks that transmits information based on a protocol for controlling such transmission.
“Online real money game‟ means an online game where a user makes a deposit in cash or kind with the expectation of earning winnings on that deposit.
In this clause, “winnings‟ means any prize, in cash or kind, which is distributed or intended to be distributed to a user of an online game based on the performance of the user and in accordance with the rules of such online game;
“We’re dealing with a framework that allows an SRO, and there will be multiple SROs, to determine whether or not all online gaming is permissible,” Chandrasekhar explained.
The simple premise of whether gambling is involved will be used to evaluate permissibility, and “if wagering is involved, the SRO will be able to say that those online games are not permissible.”
The government will designate various self-regulatory organisations (SROs) comprised of industry representatives, educators, and other professionals such as child experts, psychology experts, and so on, according to the final guidelines. The government is going to notify three SROs, but more might be added later.
The framework should include repeated warning messages at higher frequency beyond a reasonable duration for a gaming session and provision to enable a user to exclude himself upon user-defined limits being reached for time or money spent.
The gaming industry reacts
“The announcement of new rules by MeitY for online real money games is a positive turning point for our industry. A clear definition of real money and permissible games will be crucial in catalyzing the growth of legitimate industry players.” said Deepak Gullapalli, Founder & CEO, Head Digital Works.
“This framework will allow us to innovate and operate freely while ensuring that the necessary guardrails are in place to safeguard the users,” he added
“Video games & real money gaming have been given two separate identities! It was a debate that has gone on for quite a while now, and it’s a relief that it’s finally seen the light of day. The two industries can now have their own policies, guidelines, and laws that regulate them, and the reported numbers can also stay distinct. Great move by the government,” said Rohit Agarwal, Founder & Director, Alpha Zegus.
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