Government introduces new regulations around online gaming industry, prohibits games involving betting
Minister of State for Electronics and IT Rajeev Chandrasekhar reported that the government would establish three self-regulatory organisations (SROs) that will approve games that comply with the rules for operation in the country
- Apr 7, 2023,
- Updated Apr 7, 2023 2:13 PM IST
On Thursday, the Indian government issued regulations to govern the online gaming industry, prohibiting games that involve wagering or betting with real money. Minister of State for Electronics and IT Rajeev Chandrasekhar reported that the government would establish three self-regulatory organisations (SROs) that will approve games that comply with the rules for operation in the country.
Chandrasekhar explained that acceptable online games are those that do not involve wagering or content that causes user harm or addiction in children. The SROs will be composed of industry, gamers, and other stakeholders, rather than the government, and will regulate online gaming in India.
According to the regulations, the SROs are required to comprise an educator, a specialist in psychology or mental health, and someone who has served as an officer or member of an organization focused on safeguarding child rights. "This is an enabling framework to allow the serious and significant expansion in the online gaming space in India, which is a very big opportunity," Chandrasekhar said.
The IT Rules of 2021 were amended to include the online gaming rules. The online gaming self-regulatory body can deem an online real money game as permissible, as long as "the online real money game does not involve wagering on any outcome."
Chandrasekhar stated that any SRO that allows online games that involve betting on the outcome of cricket matches, such as the Indian Premier League, will violate the rules and be denotified. The SROs must also post a framework on their website to protect users against gambling addiction, financial loss, and fraud.
“This is the best possible framework and the way ahead for online gaming firms in India. With the newly established clarity, the sector will regain positive investor interest furthering its growth and parallelly driving new career and economic opportunities," Deepak Gullapalli, Founder & CEO, Head Digital Works (A23) said.
Several Indian states have prohibited online fantasy gaming platforms, citing suicide and addiction concerns among their residents. Chandrasekhar claimed that any state legitimately attempting to combat gambling or betting would find the rules non-ultra vires to their efforts.
"The new guidelines will promote innovation, boost Create in India and Brand India, and give the much-needed impetus to India's Techade. It will ensure the responsible and transparent growth of the industry, safeguarding consumer interests while curbing the proliferation of illegal offshore gambling sites," Dr Subi Chaturvedi, Global SVP, Chief Corporate Affairs and Public Policy officer of InMobi Group said.
(With Agency inputs)
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On Thursday, the Indian government issued regulations to govern the online gaming industry, prohibiting games that involve wagering or betting with real money. Minister of State for Electronics and IT Rajeev Chandrasekhar reported that the government would establish three self-regulatory organisations (SROs) that will approve games that comply with the rules for operation in the country.
Chandrasekhar explained that acceptable online games are those that do not involve wagering or content that causes user harm or addiction in children. The SROs will be composed of industry, gamers, and other stakeholders, rather than the government, and will regulate online gaming in India.
According to the regulations, the SROs are required to comprise an educator, a specialist in psychology or mental health, and someone who has served as an officer or member of an organization focused on safeguarding child rights. "This is an enabling framework to allow the serious and significant expansion in the online gaming space in India, which is a very big opportunity," Chandrasekhar said.
The IT Rules of 2021 were amended to include the online gaming rules. The online gaming self-regulatory body can deem an online real money game as permissible, as long as "the online real money game does not involve wagering on any outcome."
Chandrasekhar stated that any SRO that allows online games that involve betting on the outcome of cricket matches, such as the Indian Premier League, will violate the rules and be denotified. The SROs must also post a framework on their website to protect users against gambling addiction, financial loss, and fraud.
“This is the best possible framework and the way ahead for online gaming firms in India. With the newly established clarity, the sector will regain positive investor interest furthering its growth and parallelly driving new career and economic opportunities," Deepak Gullapalli, Founder & CEO, Head Digital Works (A23) said.
Several Indian states have prohibited online fantasy gaming platforms, citing suicide and addiction concerns among their residents. Chandrasekhar claimed that any state legitimately attempting to combat gambling or betting would find the rules non-ultra vires to their efforts.
"The new guidelines will promote innovation, boost Create in India and Brand India, and give the much-needed impetus to India's Techade. It will ensure the responsible and transparent growth of the industry, safeguarding consumer interests while curbing the proliferation of illegal offshore gambling sites," Dr Subi Chaturvedi, Global SVP, Chief Corporate Affairs and Public Policy officer of InMobi Group said.
(With Agency inputs)
Also Read
'Why stop?' Bill Gates questions Elon Musk's attempt to pause ChatGPT development
‘Limit screen time for kids’: Apple CEO Tim Cook’s advice for parents
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine