New rules have been introduced by the Minister of State for Electronics and IT, Rajeev Chandrasekhar, which state that online gaming companies will no longer be permitted to indulge in betting on the outcome of games.
Additionally, all permissible online gaming will be required to be registered.
Online Gaming Companies No Longer Permitted To Bet On Outcome Of Games
Under the principle outlined in draft rules, online gaming companies will be prohibited from betting on game outcomes, stated Chandrasekhar. According to the minister, all permissible online gaming must now be registered with a self-regulatory organization that will be accountable to the online gaming rules.
As per Chandrashekhar, “As per the principles laid under the rule, wagering on the outcome of game will not be allowed. All online gaming companies will have to register with the self-regulatory body that will decide on the action required to be taken as per the rules.”
The Ministry of Electronics and Information Technology has published draught rules for online gaming companies and has requested comments by January 17.
According to the draught online gaming rules, the government has proposed a self-regulatory mechanism, mandatory player verification, and physical Indian addresses for online gaming companies.
The new IT rules for social media platforms that were issued in 2021 will apply to online gaming companies. Online gaming platforms are expected to follow local laws, including any laws relating to gambling or betting.
Betting Ban Imposed To Expand Online Gaming Sector and Encourage Innovation
As per Chandrasekhar, it is illegal to bet on the outcome of a game. The self-regulatory organisations will create the filters and tests needed to determine permissible gaming, whether it is a game of chance, a game of skill, or something else.
He stated that the rule’s goal is to expand the online gaming sector and encourage innovation.
In terms of startups and investments, India has enormous potential. He stated that the intention behind this rule is for more investment to come in and for gaming startups to grow.
Chandrasekhar also stated that he has discovered that 40-45 percent of gamers are female, and that the feedback received by the government indicates that there is a significant amount of work that needs to be done to make online gaming safe for women.
In response to a question about the impact of rules on state laws, the minister stated that the centre wants online gaming to grow without conflict with local or state laws.
