The government has proposed a self-regulatory mechanism under the draft online gaming rules which were published on Monday making mandatory verification of players and physical Indian address for online gaming companies.
Online Gaming Companies Ruled By The Draft Online Gaming Rules
To start with, these online gaming companies will be covered under the new IT rules issued in 2021 for social media platforms.
Basically, these online gaming platforms are expected to comply with the laws of the land.
They have to follow any such law that relates to gambling or betting or the age at which an individual is competent to enter into a contract.
The notice states, “The draft amendments are aimed at addressing the said need while enabling the growth of the online gaming industry in a responsible manner.”
Appointment Of The Online Gaming Intermediary
As per this draft amendments, an online gaming intermediary will observe the due diligence required under the rules.
Also “including reasonable efforts to cause its users not to host, display, upload, publish, transmit or share an online game not in conformity with Indian law, including any law on gambling or betting”.
For additional due diligence, the draft rules prescribe for companies by displaying a registration mark on all online games registered by a self-regulatory body.
This way, it would be informing its users regarding its policy related to withdrawal or refund of the deposit, manner of determination and distribution of winnings, fees and other charges payable and KYC procedure for user account registration.
Further, the notice stated, “Self-regulatory bodies will be registered with the ministry (Ministry of Electronics and Information Technology) and may register online games of such online gaming intermediaries who are its members and which meet certain criteria. Such bodies will also resolve complaints through a grievance redressal mechanism.”
It is noteworthy here that the Ministry of Electronics and IT has invited public comments on the draft rule by January 17.
