Explained | Govt's new gaming rules that prohibit online wagering and betting

After the draft regulations on rules for online gaming were issued in January 2023, they were notified by the Ministry of Electronics and Information (MeitY).

This comes after the rules were intensely scrutinised along with an extensive consultation. The sum and substance of implementing such rules is to make sure that online gaming and social media intermediaries become more accountable and responsible.

Defining an online game

As per the new rules, an online game is defined as “a game that is offered on the internet and is accessible by a user through a computer resource or an intermediary”.

The role of Self-Regulatory Organisations (SROs)

The government has also come up with the idea of appointing SROs. These regulatory organisations will have representatives from industries, educationists and other experts like psychologists among others. In the initial process, the government will notify three such SROs.

Also Read: Govt to appoint multiple SROs for online gaming, notified rules won’t permit gambling

The SRO is responsible for clearing the online games as permissible on the basis of whether these games allow wagers. It can issue permissions only if it is satisfied that “the online real money game does not involve wagering on any outcome”, notes The Times of India.

In simple terms, the new rules forbid any game that invites betting and wagering.

"We are only regulating real money games that involve wagering. By process of exclusion, all other kinds of games will be permissible," MoS IT Rajeev Chandrasekhar said.

KYC verification of online gamers

The IT ministry has also notified a mandatory KYC verification of online gamers of games involving real money. As per the new rules, the government will also ask agencies to fact-check in an attempt to thwart fake news.

Also Read: Government's decision to identify a 'fact checking unit' to flag fake news receives massive criticism

“The release of the new online gaming rules is a watershed moment for the industry, as it recognizes online gaming intermediaries and distinguishes them from gambling. The rules will go a long way in helping us realize our honourable PM’s vision for India to become a global leader in gaming and also contribute to the continued success of Brand India and Create in India. The uniform legal framework provided by these rules will boost investor confidence. We anticipate that this will also help reduce regulatory fragmentation at the state level as also mentioned by the honorable minister, create a more stable business environment and weed out gambling platforms," Sai Srinivas, CEO and co-founder, MPL, was quoted by the publication.

Industry experts also feel that the move will be crucial in catalysing the growth of legitimate industry players.