Centre Proposes Draft Rules & Self-Regulatory Body For Online Gaming; All You Need To Know

In its first step towards regulating the online gaming sector, the ministry of electronics and information technology (MeitY), on Monday, released draft amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021.

After consulting with three important stakeholders, including online gamers, gaming start-ups, larger gaming corporations, and investors, the ministry will notify the public of the revised laws by the end of the month. Following notification of the revisions, online gambling intermediaries will have three months to comply.

What Games Will New Rules Apply To?

The suggested adjustments only apply to real money games. This covers any online game that requires a user to deposit money or another item in order to play it "with the expectation of winning any cash, prize or other objects that are intended to be gifted or awarded to the user." Thus, casual games like Candy Crush are not included in this criteria.

Any online game, regardless of whether it uses real money, may be included in the scope of the proposed modifications if the ministry so determines. Children may suffer harm, India's sovereignty, integrity, or public order may be threatened, or India's good relations with other nations may be jeopardised, reported The Indian Express.

In this case, the ministry will be compelled to include such games via a notification in a gazette, where it must explicitly state the justifications. It has the option to decide which parts of the suggested revisions would apply to these games. As of now, fantasy sports are a contentious topic, and will have to be looked into, said Minister of State for Electronics and IT Rajeev Chandrashekhar.

Draft Rules Direct Towards Self-Regulatory Bodies

As part of the proposed amendments, online gaming platforms would need to be regulated as online gaming intermediates. Any intermediary that provides at least one online game qualifies as an "online gaming intermediary" and is consequently subject to the IT ministry's regulations, reported Outlook India.

Additionally, self-regulatory organisations led by the industry would be established to monitor whether or not platforms participate in online betting or gambling. Other changes will enable the ministry to include any game under its regulatory purview if youngsters can potentially become addicted to it, regardless of whether it uses real money. Moreover, all intermediaries must ensure that all of the games they supply to online gaming platforms have been reviewed by the self-regulatory organisations of those platforms.

In accordance with the changes, the central government may also nominate one candidate for the board of directors or other governing body of a self-regulatory organisation. Five directors from a variety of professions, including online gaming, public policy, IT, psychology, and medicine, will make up the board of the self-regulatory agency.

The board must ensure that the registered games don't have anything "which is not in the interest of sovereignty and integrity of India, defence of India, security of the state, friendly relations with foreign states or public order, or incites the commission of any cognizable offence relating to the aforesaid."

Suggested Obligations Of Online Gaming Intermediary

All intermediaries in the online gambling industry will be required to register with a self-regulatory organisation that will be registered with the IT ministry. This entity must either be a society registered under the Societies Registration Act, 1860 or a section 8 corporation under the Companies Act, 2013.

An online gaming intermediary is needed to ensure that no game that permits "gambling or betting" is allowed on the platform. This is in addition to the current regulations, which forbid any content that promotes or encourages gambling or betting. The intermediary will be responsible for publishing the privacy policy, rules and regulations and the terms of conditions on the gaming platforms, besides ensuring that all the users are above the age of 18.

The intermediary will also overlook the procedure of KYC of the user at the time of registration. It will also inform users of the games it provides, methods of depositing and withdrawing the money, instructions on refund requests, extra fees that a user might be charged, the utility of the grievance redressal system, and other such necessary information.

Most importantly, the intermediary will provide necessary information to a lawfully authorised government agency within 24 hours for law enforcement purposes. The proposed revisions are available for feedback for two weeks, until January 17, post which the government will notify about the revised laws by the end of this month.

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