Online Gaming Rules: MeitY Prohibits Betting, To Appoint Self-Regulatory Organisations

The new rules aim to enforce greater due diligence by online gaming firms.

The government may notify multiple self-regulatory bodies, which shall be representative of the online gaming industry.

Source : Canva

The Ministry of Electronics and Information Technology (MeitY) on Thursday notified the new rules for online gaming which prohibit any game that involves betting and wagering, and entail a framework of multiple self-regulatory organisations (SROs). The rules are part of new amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. 

According to a statement by the ministry, the new rules aim to enforce greater due diligence by online gaming firms and social media intermediaries in respect of online games and fake or false misleading information related to government business.

Elaborating on the new rules at a press conference, Union Minister of State for Electronics and Information Technology Rajeev Chandrasekhar said, “Online gaming is certainly a huge opportunity for India and Young Indians. We see the Indian online gaming ecosystem to expand and grow into a multi-billion dollar industry and be an important catalyst to India’s One trillion-dollar Digital economy goal by 2025-26, with very clear restrictions on online wagering and betting.”

These amendments have been drafted after holding widespread consultations with multiple stakeholders including parents, school teachers, academics, students, gamers and gaming industry associations, and child rights bodies, the ministry said.  

As reported by PTI, Rajeev Chandrasekhar told reporters that online games involved in wagering or betting will fall foul of new online gaming rules. 

There will be multiple SROs, and these SROs will have participation from all the stakeholders including but not limited to the industry.

"We are dealing with a framework that allows for all online gaming to be determined as permissible or not, by an SRO and there will be multiple SROs," Chandrasekhar said.

Permissibility will be determined with the simple principle of whether wagering is involved and "if wagering is involved, the SRO will be in a position to say that those online games are not permissible."

On the new gaming rules, Joy Bhattacharjya, Director-General of the Federation of Indian Fantasy Sports (FIFS), told ABP Live, "The notification of MeitY rules marks a pivotal moment for the online gaming industry in India. It is expected to put an end to the ambiguities that the industry was grappling with and lay the foundation for sustainable and responsible growth of the industry."

All India Gaming Federation CEO Roland Landers said, "These rules will go a long way in promoting consumer interest while helping the industry grow responsibly and transparently and will also help in curbing the menace of anti-national and illegal offshore gambling sites, which have been proliferating in the last few years."

Sai Srinivas, CEO and Co-Founder of MPL told ABP Live, “The release of the new online gaming rules is a watershed moment for the industry, as it recognises online gaming intermediaries and distinguishes them from gambling."

New Rules For Online Gaming

As per the amended rules, it has been made obligatory on the part of intermediaries to make a reasonable effort to not host, publish or share any online game that can cause the user harm, or that has not been verified as a permissible online game by an online gaming self-regulatory body/bodies designated by the central government. 

The intermediary will also have to ensure that no advertisement or surrogate advertisement or promotion of an online game that is not a permissible online game, is hosted on its platform.

The self-regulatory body will have the authority to inquire and satisfy itself that the online game does not involve wagering on any outcome, that the online gaming intermediary and the game comply with the rules, the requirements under law for being competent to enter into a contract (currently at 18 years), and a framework made by the self-regulatory body regarding safeguards against user harm, including psychological harm, measures to safeguard through parental controls, age-rating mechanism, and measures to safeguard users against the risk of gaming addiction.

The amended rules also cast additional obligations on online gaming intermediaries in relation to online games involving real money. These include the displaying of a mark of verification by the self-regulatory body on such games; informing their users of the policy for withdrawal or refund of deposit, manner of determination and distribution of winnings, fees, and other charges payable; obtaining the KYC details of the users; and not giving credit or enabling financing by third parties to the users.

If in case the Central Government issues a notification in the interest of users or other specified grounds, the same rules and obligations will be made applicable to even those games where the user is not required to make any deposit for winnings.

The government may notify multiple self-regulatory bodies, which shall be representative of the online gaming industry but it will function at arm’s length from their members, and a Board consisting of Directors who are free from conflict of interest and represent all relevant stakeholders and experts, including online games users, educationists, psychology or mental health experts, ICT experts, persons with child rights protection experience and individuals having experience in relevant fields of public policy and administration.

The rules provide for the obligations to become applicable once a sufficient number of self-regulatory bodies have been designated so that the online gaming industry has adequate time to comply with its obligations.