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Government suggests self-regulatory system, due diligence for online gaming firms

The new IT regulations that were issued in 2021 for social media platforms will cover online gaming enterprises.

The government has suggested a self-regulatory framework, required player authentication, and actual Indian addresses for online gaming enterprises, according to the draft online gaming guidelines released on Monday.

The new IT regulations that were issued in 2021 for social media platforms will cover online gaming enterprises. The legal requirements of the country, along with any laws governing gambling or betting or the legal age at which a person can engage in a contract, must be complied with by online gaming platforms.

“The draft amendments are aimed at addressing the said need while enabling the growth of the online gaming industry in a responsible manner,” the notice said.

The proposed modifications state that an online gaming facilitator must follow the regulations and take necessary steps to ensure that its users do not host, display, upload, publish, transmit, or share an online game that is not in compliance with Indian law, including any law on gambling or betting. 

The proposed regulations mandate additional due diligence for businesses by mandating the display of a registration mark on all online games registered by a self-regulatory body and informing users of their withdrawal or refund policies, methods for calculating and distributing winnings, fees and other costs due, and KYC requirements for user account registration.

“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,” the notice said.

Public comments on the proposed rule are being sought by the Ministry of Electronics and IT until January 17.

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