On January 17, the government extended the deadline for receiving stakeholder recommendations on the proposed gaming rules until January 25 and stated that the new rules would be ready by January 31.

The Ministry of Electronics and IT (MEITY) has fixed January 17 as the last date for public comments on the proposed rules. It has proposed a self-regulatory mechanism to regulate online gaming companies under the draught rules for online gaming.

Addressing stakeholders, Rajeev Chandrasekhar, Minister of State for Electronics and IT, said industry bodies cannot become self-regulatory organizations to regulate online gaming, and the watchdog has to be away from the dominance of industry players.

In an open house consultation with online gaming companies on the proposed rules, Rajeev Chandrasekhar said: “It is wrong to assume that an industry body will automatically become an SRO (self-regulatory organization). “Any industry body will represent all stakeholders, not an SRO.”

He said both games of skill and chance could be allowed online, but pay-to-win, which depends on the outcome of live games, will not be allowed.

The Minister likewise said that SRO will comprise delegates of children, parents, players, the government, and gaming intermediaries. All gaming companies that can be allowed under the new rules will need to register with SRO.
Industry delegates have welcomed the government’s steps and clarity on the proposed rules.

“The draught rules provide much-needed policy clarity for online gaming in India,” says Trivikraman Thampy, co-founder and CEO of Games24x7. Once finalized, these rules will result in significantly higher investor interest in the space, which in turn will lead to more growth, innovation, and employment.

The draught rules have struck the right balance between consumer protection and creating a sustainable business environment for the Indian online gaming industry, he said.

Additional suggestions from the industry include the registration of multiple SROs, which already exist in the industry, the creation of a grievance redressal mechanism for gaming operators, and the ability to register online games in two steps.

Credit: Businessline