The Ministry of Electronics and Information Technology (MeitY) on 6th April released an amendment to the IT Rules, 2021, to regulate “online real money games” where users have to risk money to play.
- MeitY’s Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023 require real money gaming platforms to register with a self-regulatory body (SRB) that will determine whether or not the game is “permissible”.
- There will now be more government oversight over how SRBs function. If these games are not deemed “permissible they will not get the protection of the amendment, and States may be able to take action against them for being betting or gambling platforms.
- As such, games that are deemed permissible will be allowed to operate legally, even if they involve deposits against an expectation of winnings. Video games where money is not involved need not approach an SRB.
Key amendments
- It has been made obligatory on the part of intermediaries to make reasonable effort to not host, publish or share any online game that can cause the user harm, or that has not been verified as a permissible online game by an online gaming self-regulatory body/bodies designated by the Central Government.
- The intermediary will also have to ensure that no advertisement or surrogate advertisement or promotion of an online game that is not a permissible online game, is hosted on its platform.
- The self-regulatory body will have the authority to inquire and satisfy itself that the online game does not involve wagering on any outcome.
- The online gaming intermediaries have to display of a mark of verification by the self-regulatory body on such games; have to inform their users of the policy for withdrawal or refund of deposit, manner of determination and distribution of winnings, fees and other charges payable.
- The Government may notify multiple self-regulatory bodies, which shall be representative of online gaming industry.
- The amended rules now also make it obligatory on the intermediaries to not to publish, share or host fake, false or misleading information in respect of any business of the Central Government. These fake, false or misleading information will identified by the notified Fact Check Unit of the Central Government.
