Draft Rules for Online Gaming in India
The Ministry of Electronics and IT has introduced draft rules aimed at regulating online gaming in India through the establishment of the Online Gaming Authority of India. This initiative is part of the Promotion and Regulation of Online Gaming Act, 2025.
Key Proposals
- Regulation and Oversight:
- The creation of an Online Gaming Authority with a chairperson and five members from various government ministries.
- The authority will oversee the registration of games, determine if they qualify as "online money games," and issue penalties.
- Types of Games:
- Prohibits all forms of online money games like poker and fantasy sports.
- Allows only "online social games" and e-sports.
- Legal Implications:
- Violations of the rules will be considered non-bailable offenses.
- The entire company staff could be held accountable for facilitating breaches.
- Revenue Models and Compliance:
- Entities must disclose revenue models and user safety features.
- Revenue generation should not involve payments akin to stakes or wagers.
Grievance Redressal System
- A three-tiered grievance mechanism is proposed:
- Internal mechanism of the registered online game service provider.
- Grievance Appellate Committee (as per IT Intermediary Rules, 2021).
- The Online Gaming Authority as the final appellate body.
Additional Provisions
- The Ministry of Information and Broadcasting will issue guidelines on categorizing online games for various purposes such as recreation and education.
- Entities found in violation of the Act will face penalties based on the extent of non-compliance and resultant user harm.
Stakeholders can submit comments on the draft rules until October 31.
