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The Ministry of Electronics and IT (MeitY) has announced new regulations to protect online gamers from harmful content and addiction. A self-regulation model has been applied for the online gaming sector where SROs will approve the games that can operate in the country in accordance with the rules. These new online gaming rules have been included as an amendment in the IT Rules of 2021.
The Indian government defines an online game as “a game that is offered on the Internet and is accessible by a user through a computer resource or an intermediary.”
However, online games that are involved in wagering and betting will fall foul of the new rules. Minister of State for Electronics and IT Rajeev Chandrasekhar told reporters that “permissible online games are those games, real money or otherwise, that do not involve wagering, user harm in its content and do not create any addictive consequences for children.”
Self Regulatory Organisations will determine whether an online game is permissible or not, based on whether it involves wagering or betting. Three SROs will be initially notified, but the government can add more later.
The new rules also dictate that SROs include an educationist, an expert in the field of psychology or mental health, and an individual who is or has been a member or officer of an organisation dealing with the protection of child rights.
The new rules can be summarised into the following points:
1. The government will set up several SROs with representatives from various sectors. These SROs will decide if a game is allowed or not.
2. Gaming firms or platforms must not offer, publish, or share online games that have harmful or banned content. They must verify the identity of online gamers.
3. Online games that involve any kind of gambling (including ads) will be prohibited.
4. SROs will also make sure games follow guidelines to prevent addiction and mental harm through parental controls, frequent warning messages, and age-rating systems.
5. The gamers will have the option to opt-out after reaching their own limits for time or money spent.
Aside from the above, Rajeev Chandrasekhar clarified that real money gaming is allowed but it will become unpermissible if money is staked on the result of the game. He added that any SRO that permits such games will be breaking the rules. This was in response to a question about some apps that offer cash prizes based on the outcome of IPL cricket matches.
The Ministry of Electronics and IT (MeitY) has asked SROs to prominently mention on their websites and/or mobile apps a framework for verifying an online real money game. This framework will be put in place to guarantee the following:
1. Prevent user harm, such as self-harm and psychological harm, from online gaming
2. Safeguard children from inappropriate or harmful online games by using parental or access control and age-rating mechanism
3. Reduce the risk of gaming addiction, financial loss and financial fraud by warning users repeatedly and allowing them to exclude themselves upon user-defined limits being reached for time or money spent
4. Ensure that online real money games are not against the interests of sovereignty and integrity of India
Online gaming companies and industry associations have welcomed the new rules. While some have called it a landmark moment, others have hailed it as a means to promote gaming innovations in India.
“The release of the new online gaming rules is a watershed moment for the industry, as it recognizes online gaming intermediaries and distinguishes them from gambling. The rules will go a long way in helping India to become a global leader in gaming and also contribute to the continued success of Brand India and Create in India,” said Sai Srinivas, CEO and Co-Founder of MPL.
According to Srinivas, the legal framework provided by the new rules will boost investor confidence. He added that the industry also looks forward to the reduction in regulatory fragmentation at the state level to create a more stable business environment and combat gambling platforms.
Dr Subi Chaturvedi, Chief Corporate Affairs and Public Policy officer, InMobi Group, believes that the new guidelines will promote innovation and boost ‘create in India’ and ‘brand in India’ initiatives. “It will ensure the responsible and transparent growth of the industry, safeguarding consumer interests while curbing the proliferation of illegal offshore gambling sites,” said Chaturvedi.
Echoing a similar sentiment, Deepak Gullapalli, Founder & CEO, Head Digital Works (A23), said that the announcement of new rules by MeitY is a positive turning point for the gaming industry. “The clear definition of real money and permissible games will be crucial in catalyzing the growth of legitimate industry players. This framework will allow us to innovate and operate freely while ensuring that the necessary guardrails are in place to safeguard the users,” he said.
Shiva Nandy, Founder and CEO of Skyesports, said, “As an esports tournament organizer, the new rules are a great sign as they clearly distinguish between online gaming and real money gaming. I look forward to seeing a lot of homegrown online games being created by Indian developers. I urge that the approval process for these developers through the SROs is swift and uncomplicated.”
