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On Monday, the government said that online gaming companies will not be allowed to engage in betting of any kind while maintaining that it is not regulating betting but the online gaming industry, which is expected to be around $200 billion right now.
“Any game that allows or permits wagering as its outcome is affectively a “no go” area if you bet on the outcome of the game.. it is prohibited...Nobody is going to underline whether it is a game of skill or game of chance. Nothing that permits you to wager on the outcome of a game, shall be permitted, and it is the Self-Regulatory Organisation (SRO) that will determine whether it is permitted gaming or not,” Rajeev Chandrasekhar, Minister of State for Electronics and IT, told media here.
The Ministry of Electronics and IT (MeitY) has floated a consultation paper on this and will be open for discussions and has invited comments on the same from stakeholders by January 17. The amendments are made in the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021.
MeitY was made the nodal ministry for matters related to online gaming on December 27.
Game Changer
According to the draft rules, the online gaming company has to appoint a nodal contact person for 24x7 coordination with law enforcement agencies and officers to ensure compliance with their orders or requisitions made in accordance with the provisions of law or rules made thereunder.
The company should also appoint a Chief Compliance Officer, who will be a key managerial personnel or other senior employee of the online gaming intermediary who is resident in India and who will be ensuring compliance with the Act and the rules made thereunder, it said.
Chandrasekhar said that as of now, all permissible online gaming will need to be registered with a SRO that will be accountable to the online gaming rules and the objective of the rule is to grow the online gaming sector and encourage innovation.
When asked about the permissible level or safeguards for underage or children, he said that there are two solutions to child gating: “one is to lower the age, and the second is to keep the age and seek parental consent... Currently, we have taken a safe approach, which is that children under the age of 18 need parental consent.”
The gaming industry has welcomed the amendments made by the government, saying the industry would significantly benefit from a stable policy framework that provides clarity on what is permissible.
“The sector has over 1,000 companies that are less than 24 months old and in the early revenue stages. We are hoping the government will continue to encourage companies to invest in technology and IP creation and consider the survival of the sector by retaining 18 per cent GST on the commission,” Saumya Singh Rathore, Co-Founder, WinZO games, said.
“The creation of a self-regulatory body for the industry is a step in the right direction towards creating a larger framework for a responsible gaming environment in the country,” Trivikraman Thampy, co-founder and co-CEO of Games24x7, said.
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