MeitY proposed amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules 2021 in January 2021.
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The Ministry of Electronics and Information Technology (MeitY) takes a step towards regulating online gaming in India with the recent amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, published on 6th April. These amendments introduce a clear distinction between “online games” and “online real money games” and empower self-regulatory organizations (SROs) to determine the legality of real-money games in India. The Indian government acknowledges the difference between “online games” and “online real money games.”
MeitY proposed amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules 2021 in January 2021. However, the initial proposal lacked a clear distinction between “online games” and “online real money games.” The recent changes now provide definitions for these terms:
Online game: A game offered on the Internet accessible to users through a computer resource or intermediary.
Online real money game: An online game where users make a deposit in cash or kind with the expectation of earning winnings on that deposit.
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Under the updated rules, SROs will now have the authority to regulate games involving real-money gaming. This means that the responsibility of determining the legality of real-money games now lies with industry bodies. In a press briefing on 6th April, the Union Minister of State for Electronics and IT, Rajeev Chandrasekhar, stated that the rules do not cover the complexities of defining games of chance or games of skill. He further added that gaming companies would only need to approach SROs if there is money involved in the game. MeitY will leave it up to the SROs to decide what constitutes addiction and user harm, as these criteria are likely to evolve over time.
The Indian gaming industry has faced ambiguity in recent times regarding the classification of games like Rummy or Poker as online games. However, with the recent distinction made by the government, a significant difference is established between “games of chance” and “games of skill.”
The Ministry of Electronics and Information Technology’s recent amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, mark a significant step towards regulating online gaming in India. By differentiating “online games” and “online real money games” and empowering SROs to determine the legality of real-money games, the government aims to provide clarity to the gaming industry and ensure responsible and regulated gaming practices in the country.
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