Government Proposes Self-Regulation For Online Gaming Companies MoS Rajeev Chandrasekhar said that online gaming companies will not be allowed to engage in betting on the outcome of games under the principle laid in draft rules
By Teena Jose
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Union minister of state for electronics and IT, Rajeev Chandrasekhar, on Monday, said that the government is set to commence public consultation for online gaming with a self-regulatory body which is responsible to certify what is permitted as an online gaming intermediary in the country. He further said that online gaming companies will not be allowed to engage in betting on the outcome of games under the principle laid in draft rules, according to a PTI report.
"As per the principles laid under the rule, wagering on the outcome of a game will not be allowed. All online gaming companies will have to register with the self-regulatory body that will decide on the action required to be taken as per the rules," Rajeev Chandrasekhar said in a statement, as per the report.
He added that, "The rules regulate betting. It is basically a prohibition of wagering on any game. The self-regulatory body will define whether it is a permitted game or not. The online games that offer winnings, any game that allows wagering on the outcome is effectively a no-go-area. If you bet on the outcome of a game, it is prohibited under 3(b) 10 of the IT rules."
The ministry of electronics and IT has published draft rules for online gaming companies and has invited comments on the same by January 17, with an objective to grow the online gaming sector and innovation. The minister also said that he expects online gaming rules to be ready in early February.
In June 2022, the information and broadcasting ministry had issued an advisory to the print, electronic and digital media to refrain from advertising online betting platforms. The advisory comes in line as betting and gambling are illegal in most parts of the country and pose financial and socioeconomic risk for consumers.
Also, in November 2022, the panel of state finance ministers had planned to recommend a uniform GST levy of 28 per cent on online gaming irrespective of whether it is a game of skill or game of chance. As per a FICCI report released in 2020, online gaming sector made INR 6,500 crore in 2019 and is expected to reach INR 18,700 crore by 2022 contributing massively to employment, growth to ancillary sector, bringing in fresh investments and Indian economy.
