India's draft online gaming rules : What are the regulations govt has released, and why

 India's draft online gaming rules : What and the regulations govt. has released, and why ?

IT minister Chandrasekhar said the government may also regulate the content of online gaming, to ensure they don't have 'violent, addictive or sexual content'. We explain all the details.

                      online gaming sector 

The government has released the draft of rules made for online gaming companies. According to this draft.. A self-regulatory body will keep an eye on whether the rules made for these online gaming companies are being followed properly or not.

 To prevent activities like betting, these online gaming companies will now have to register themselves with the self-regulatory body. Compulsory verification of their addresses and players in India has been proposed for online gaming companies. 

What do the draft rules say?

The proposed rules, aimed at safeguarding users against potential harm from skill-based games, have been introduced as an amendment to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021.

 The attempt is to regulate online gaming platforms as intermediaries and place due diligence requirements on them.

“As per the principles laid under the rule, wagering on the outcome of a game will not be allowed. All online gaming companies will have to register with the self-regulatory body,” Chandrasekhar said.

Online gaming sector in India

The revenue of the Indian mobile gaming industry is expected to reach $5 billion in 2025. The industry grew at a compound annual growth rate (CAGR) of 38 per cent in India between 2017-2020, as opposed to 8 per cent in China and 10 per cent in the US.

It is expected to grow at a CAGR of 15 per cent to reach Rs 153 billion in revenue by 2024, as per a report by VC firm Sequoia and management consulting company BCG.

“We are grateful to the government for acknowledging the long-standing need of the gamers and the online gaming industry. We believe this is a great first step for comprehensive regulation for online gaming and will hopefully reduce the state-wise regulatory fragmentation that was a big challenge for the industry,” said All India Gaming Federation (AIGF) CEO Roland Landers in a statement.

How have stakeholders reacted to the proposed rules?

Online gaming companies and industry associations have welcomed the rules.

“While the industry would continue to expand in the coming years, driven by innovation in technology, growing culturally relevant IP creation, and increasing access to smartphones and high-speed internet in deeper Bharat, the requisite stability came just in time,” said Saumya Singh Rathore, Co-Founder, WinZO games. “The online gaming industry would significantly benefit from a stable policy framework that renders clarity on what is permissible. The sector would evolve to be more accountable and thus safer for the end consumers. The central framework would also put a pause to the knee-jerk blanket bans by states,” he said.