The Government intends to put a ban on betting in online gaming. The Government in an attempt to achieve this objective changed the IT Rules. Once these are enacted, there would be a self-regulatory framework for online gaming. It would be additional due diligence for online gaming.

The idea is to safeguard the users against the potential harm largely from betting or gambling-related outcomes in the games.

The Ministry of Electronics and Information Technology (Meity) will be the nodal ministry to oversee the online gaming industry.

The self-regulatory organisations (SROs) will verify the games before they are published or hosted or advertised by the online gaming intermediaries. The games industry will display a registration mark given by SROs on all online games. It will inform its users regarding its policy related to withdrawal or refund of the deposit, manner of determination or distribution of winnings fees and other charges payable and KYC (Know Your Customer), procedure for user account registration.

There can be multiple SROs which could be registered under the electronics and It ministry.

SROs will come up with a framework to define the content of an online game to safeguard users against the harm.

It is not necessary to classify a game either as a game of skill or a game of chance. It is necessary to prohibit the wagering on any game. It is the SRO that will determine this.

There would be periodic audit reports from SROs. SROs will categorise the games.

SROs will have a governing body. It will have an independent eminent person from the field of online game players, individuals from field of psychology, consumer education. He would be government appointed individual having experience in public policy.

The gaming intermediaries will have to appoint a chief compliance officer, a nodal contact person for coordination and must have a physical contact address published on its website.

Non-compliance make the gaming intermediaries liable to punitive action as per the IT Act.

This is the first step towards framing a comprehensive regulation for online gaming in future. It will perhaps reduce the statewise regulatory fragmentation.