ETtech Explainer: timeline of India’s draft online gaming rules

The Ministry of Electronics and Information Technology (MeitY) has come up with draft online gaming rules which are open to comments from stakeholders. Gaming companies and industry bodies have responded to the draft rules. ET reported on February 6 that companies, including Dream Sports, Zupee and MPL, have distanced themselves from industry body IAMAI’s note to the MeitY calling the rules “right on intent but poor on scoping”.

Here, ETtech takes a close look at the timeline of events following the Centre’s announcement of self- regulatory rules for online gaming firms.

What are the rules about?

According to the draft rules, online gaming platforms are expected to comply with the laws of the land, including any such law that relates to gambling or betting or the age at which an individual is competent to enter into a contract.

The proposed rules state that an online gaming intermediary 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 require further due diligence from online gaming firms, including the display of a registration mark on all online games registered with a self-regulatory authority and disclosure of their withdrawal and refund policies to users.

Timeline Minister of State for Electronics and Information Technology Rajeev Chandrasekhar has said that the government will form rules for online gaming intermediaries.

December 27, 2022: Informing the public about the government’s intention to regulate online gaming, the minister tweeted:

“The @narendramodi ji govt is committd to fully encouragng Tech innovation – but also to ensure no illegal content/services possible. @GoI_MeitY will soon publish Rules for online gaming intermedries n start public consultatn on same #Open #SafeTrusted #Accountable #Internet .” (SIC)

States to police gaming; Centre to frame rules

December 29 2022: ET reported that state governments will be tasked with overseeing law and order issues related to online gaming within their jurisdiction, while the Union government would define the overarching regulations for the industry.

No betting on the outcome of games

January 2: Online gaming companies will not be allowed to engage in betting on the outcome of games under the principle laid in draft rules, the minister said.

Self-regulation for e-gaming companies

January 2: The government proposed a self-regulatory mechanism for online gaming firms. It also made verification of players through Know Your Customer (KYC) norms mandatory. Gaming companies will also be required to have a physical presence in India. The gaming intermediary will also have to display the credentials of the SRO that registered and approved the game through its website and mobile app. SROs need to register themselves with the IT ministry. SROs will be empowered to resolve complaints from users through a grievance redressal mechanism, according to the draft rules. Online gaming industry lauds Meity’s draft amendments to IT Rules

MeitY looks to regulate gaming among children

January 4: ET reported that the government was drafting new rules to limit the amount of time children can spend on a gaming app, and may also mandate gaming companies to submit anonymised reports on such usage. The government was also planning to introduce provisions requiring gaming companies to install mechanisms that prevent children below the age of 18 from making in-game purchases.

Industry bodies can’t be self-regulatory organisations for online gaming: Minister

January 17: Industry bodies cannot become self-regulatory organisations to regulate online gaming and the watchdog has to be away from the dominance of industry players, the Minister said. “It is wrong to assume that an industry body will automatically become an SRO (self-regulatory organisation). Any industry body will not be SRO. It will be a body representing all the stakeholders,” Chandrasekhar said.

Govt open to idea of multiple e-gaming SROs

January 19: The government is open to the idea of more than one self-regulatory organisation (SRO) being set up for certifying and managing online gaming companies, ET reported. It may, however, put in place strict rules and regulations regarding the legal responsibilities of SROs, the do’s and don’ts, along with other norms for who can form an SRO.

Deadline for feedback on draft rules extended

January 25: The government extended till January 25 public consultations on the draft online gaming rules, it said in a notification. The MeitY released the draft rules on January 2 and had asked stakeholders to submit their views by January 17.

Gaming firms seek tweaks in draft rules

The role of the proposed self-regulatory body (SRB) and the process of registration of games were among the key issues on which online gaming platforms and industry bodies put forth their suggestions, while making their submissions to the Ministry of Electronics & Information Technology (Meity) on the draft rules for the sector. The gaming committee of the Internet and Mobile Association of India (IAMAI) requested the government to establish a standard framework for the SRBs to adhere to in order to guarantee uniform compliance and transparency.