The government on Thursday released new rules for online gaming which prohibit any game that involves betting and wagering and entail a framework of multiple self-regulatory organisations (SROs).
“Online games involved in wagering or betting will fall foul of new online gaming rules,” minister of state for IT Rajeev Chandrasekhar told reporters here.
The new rules define “online game” as “a game that is offered on the internet and is accessible by a user through a computer resource or an intermediary”. There will be multiple SROs, and these SROs will have participation from all the stakeholders including but not limited to the industry.
“We are dealing with a framework which allows for all online gaming to be determined as permissible or not, by an SRO and there will be multiple SROs,” Chandrasekhar said.
Permissibility will be determined with the simple principle of whether wagering is involved and “if wagering is involved, the SRO will be in a position to say that those online games are not permissible”.
“These rules don’t deal with all the sophistication into what is game of chance or game of skill…. You don’t have to go to SRO if you are only a gaming firm, but only when there is money involved in the game,” he said.
“The notification is expected to put an end to the ambiguities that the industry was grappling with and lay the foundation for sustainable and responsible growth of the industry. We look forward to engaging with MeitY to seek requisite clarifications as our members initiate the compliance process,” Joy Bhattacharjya, DG, Federation of Indian Fantasy Sports, said.
The rules ensure that there will be no surrogate advertising by firms that promote betting online.
The minister stressed the need for KYC (Know Your Customer) to ensure that no money laundering is involved through online gaming.