Online gaming: New Rules Aims To Promote Responsible And Ethical Gaming Practices

The Ministry of Information Technology (MEITY) changed the way online gambling is regulated in India with the introduction of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules 2023 in April. The Rules seek to provide some structure to India's often disorganized gaming rules and regulations by serving as a foundation for moral and responsible gaming behavior. By 2025, it is anticipated that the Indian mobile gaming market would generate $5 billion in revenue, with a CAGR of 28–30%. In addition, it is anticipated that 500 million gamers would exist in India by 2025.

Online Games Defined

The classification of an online game as a "permissible online real money game" upon verification of a "online real money game" (ORM game) by an online gaming self-regulatory body (SRB) is one of the major modifications made by these Rules.

The major function of SRBs, which are self-regulatory organizations recognized by the MEITY, is to confirm that ORM games are legal ORM games. The MEITY is authorized by the Rules to appoint as many SRBs as it deems necessary. Under Section 8 of the Companies Act of 2013, the SRBs may be established as non-profit entities, with its members serving as representatives of the gaming industry.

Upon receiving a request from one of its members and after determining that the ORM game does not entail betting on any outcomes and that both the online gaming intermediary and the particular online game are in conformity with the Rules, the SRBs may classify any ORM game as a permitted ORM game.

Additionally, these Rules mandate that online gaming intermediaries set up complaint resolution processes that let players report and seek compensation for rules violations or any conduct that offends or bothers them.

Ensuring Compliance

Online gaming intermediates must designate compliance officers who will be in charge of making sure the intermediary complies with the following requirements. The rules must be followed by the legal ORM games, and online gaming intermediaries must take care to host no legal ORM games that have not been approved by the SRBs. The word "intermediaries" in the context of online gaming is ambiguous; it is unclear if it refers to platforms like app stores that host online games as well as game publishers. However, it may be inferred that online game producers will be regarded as online gaming intermediaries based on the Rules' intended use. As a result, the government will have the authority under the Information Technology Act to shut down any gambling intermediaries that are not compliant.

It should be noted that the words online gaming, gambling, and betting are frequently used synonymously in India. Indian law permits games of skill but forbids games of chance. However, neither word has a set definition, although there are several decisions from the Supreme Court and several high courts that provide some clarification. The issue is not clarified by the Rules, and SRBs must use their subjective judgment to determine if an ORM game contains a gambling element, or element of chance.

Additionally, according to the Indian Constitution, gambling (whether it be offline or online) is a state topic (under Entry 34, List II "Gambling" and "Betting"). As a result, each state is free to enact laws that govern online gaming, and those laws will take precedence over the Rules.

The majority of states still adhere to the Public Gambling Act of 1867 from the colonial era, however Meghalaya, Nagaland, and Sikkim have attempted to provide a regulated framework for internet gaming. Real money online gaming has lately been outlawed in Tamil Nadu, and it is additionally banned in Telangana, Andhra Pradesh, Assam, and Odisha. This implies that, under the current legal system, individual governments can ban or limit certain internet games, particularly those that involve real money and are considered "games of chance" based on their own legislative judgment.