Self-regulation, registration for online real money gaming soon

The government has proposed to bring online real money gaming platforms under the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, which also regulates social media platforms. The new rules could hurt foreign betting firms while boosting the business of Indian fantasy sports and other gaming companies, experts said.

- Abhijit Ahaskar & Varuni Khosla

The ministry of electronics and IT (MeitY), which became the nodal ministry to govern online gaming on 23 December, released a draft for public consultation on Monday. The final amendment to the IT rules after industry consultation will be notified by April, the ministry said.

The consultation paper defines the term "online game" as "a game that is offered on the Internet and is accessible by a user through a computer resource if he makes a deposit with the expectation of earning winnings". It allows only "games of skill" to operate legally in India. Games of skill have been defined through various court rulings in India and include games like rummy and the Dreamll model of online fantasy sports.

The government also recommends creating a self-regulatory organization (SRO), self-regulatory framework, mandatory KYC verification of players, the appointment of compliance and nodal officers, and having a physical address in India. It also recommends additional due diligence to be observed by gaming firms, including publishing measures taken to protect user deposits and informing the user about the "risks of financial loss and addiction associated with online games".