Draft Online Gaming Rules

The Ministry of Electronic and Information Technology (MeitY) has recently issued Draft Online Gaming Rules by making amendment to IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021.

What are the objectives of Draft Online Gaming Rules?

• To ensure online games should be offered in conformity with Indian laws,
• To safeguard users of online gaming against potential harm,
• Act as an important catalyst to India’s One trillion dollar Digital Economy Goal by 2025-26.
• To provide an open ecosystem for the online gaming industry to expand and grow,

What are the key highlights of Draft Online Gaming Rules?

• Self Regulatory Mechanism
  • A Self Regulatory Body will be established to give approval to online gaming intermediaries.
  • It will ensure due diligence by displaying a registration mark on all registered online games.
  • It will also ensure online gaming intermediaries must adhere to the Code of Ethics.
• Additional Due diligence
  • Intermediaries need to follow strict KYC norms, age verification mechanisms, transparent refund policies, privacy policies, etc.
  • Kids under 18 years will need parental consent for playing online games.
• A complete ban on Betting
  • Online gaming platforms will not be allowed to offer betting on the outcome of the game.
• A Compliance Officer
  • Similar to Social Media Companies, Online gaming platforms need to appoint a Compliance Officer who will ensure all the rules have been followed, a Nodal Officer to assist law enforcement agencies, and a Grievance Officer to resolve user complaints.

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What is the current status of Online Gaming Industry in India?

• India is the world’s largest mobile gaming market with 330 million mobile gamers.
• It is growing with exponential growth and is on the trajectory to grow by 20-30% by 2023.
• Revenue from the online gaming industry grew from $2 billion in 2021 to $2.6 billion in 2022.
• Three popular gaming unicorns are Dream11, Game 24X7, and Mobile Premier League.
• The Government has allowed 100% FDI through automated routes for the gaming industry.

Read: Official Document