Reformed rules regarding online gaming or e-gaming in India
New draft rules for online gaming were published this Monday, and according to this new draft online gaming rules, the Government of India has proposed a new self-regulatory mechanism, along with mandatory verification of the players, their physical addresses, and also additional due diligence for online gaming companies that are working in India.
The notice mentions that with the increasing number of gamers in India, it has become necessary to ensure that the games being offered are in line with Indian laws, and also to safeguard the players of these games from potential harm. Furthermore, the notice states that apart from addressing the above-mentioned needs, these new changes would also promote the growth of the online gaming industry in India in a responsible manner.
To achieve these goals, the Government of India has made these new draft rules for online gaming. These new rules and amendments also state that an online gaming intermediary will be observing the due diligence that is required under these new rules. This also includes putting reasonable efforts for the players, or users to not host, display, or share an online game that does not obey the Indian law or any law on gambling or betting.
Additional due diligence for online gaming companies in India
As for the additional due diligence for online gaming companies, the draft rules have prescribed a number of new tasks. As per these, the gaming companies have to do the following:
- Display a registration mark on all the online games that are registered by a self-regulatory body.
- Inform the players and users of the game’s policy regarding, withdrawal or refund of the deposited money, and also the manner of determination and distribution of the winnings, fees, and all other types of charges payable.
- Inform the players about the KYC procedure for user registration.
Rajeev Chandrashekhar, the MoS IT, said that their main intention is to ensure that there is growth in the gaming sector, and they want more and more online gaming intermediaries. However, they do not want any sort of betting, or gambling based on the outcome of the games.
Rajeev also mentioned that the ministry will start consultation next week with gamers, startups, and other involved companies. MeitY has invited public comments on this new draft rule by January 17.
Self-regulatory bodies registered with MeitY for regulating e-gaming in India
The draft rules also state that new self-regulatory bodies will be formed which will be registered with the Ministry of Electronics and Information Technology (MeitY). These bodies will have multiple tasks, such as registering the online games of intermediaries that are its members and meet certain criteria and also resolving complaints using a grievance redressal mechanism.
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