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Online gambling has been on the rise in India in recent years, and it has caught the attention of the central government. Replying to a letter written by technology and gaming lawyer Jay Sayta, the Ministry of Electronics and Information Technology (MeitY) confirmed that it is aware of the growing number of online gambling applications in the country and also acknowledged the possible dangers posed by online gambling apps, such as running into debt and addiction problems.
Discussions are underway, and the increasing number of online gambling applications further highlights the need for a clearer and more transparent roadmap. This is important not only for potential players who wish to use Indian no deposit casino bonus codes through licensed providers, but also for the operators themselves, so that they are able to be well-equipped and fully compliant with the necessary regulatory framework.
Central Government In Action
The central government formed an Inter-Ministerial Taskforce to explore ways to control online gaming and esports, and after several discussions and consultations, the central government has decided to assign the responsibility of regulating these activities to specific ministries. This decision was made in December 2022.
As per a Gazette announcement published on 26th December 2022, revisions were made to the to the Government of India Rules, 2022 which added “Matters related to Online Gaming” to the Ministry of Electronics and Information Technology (MeitY) and “e-Sports as part of multi-sports events” to the Ministry of Youth Affairs and Sports.
Draft Intermediary Guidelines For Public Consultation
Following this development, MeitY announced the draft intermediary guidelines for public consultation. However, in his letter, Sayta pointed out that the intermediary rules which were suggested do not fall within MeitY’s power, citing various judicial precedents. He, therefore, asked for the whole matter to be re-assessed by the cabinet secretary.
The draft of the intermediary rules for online gaming were released by MeitY on January 2, 2023. These included a set of guidelines that can control the online gaming industry in India. The key regulations proposed where the establishment of a self-regulatory organization (SRO), mandatory compliance with Know Your Customer (KYC) norms for player verification, as well as grievance redressal mechanisms.
In January, consultations on the draft online gaming rules were conducted with parents, pupils, and educators. The government’s response to Sayta’s letter acknowledged the unequal laws on online gaming in the country. Since gambling and betting falls into the jurisdiction of the state government, the central government is left with limited control. However, it can still regulate the online gaming industry through the Information Technology Act.
A Step In The Right Direction?
While the government’s efforts to regulate the online gaming industry in India are a step in the right direction, there are still concerns regarding the effectiveness of the proposed regulations. For instance, there are concerns that the proposed KYC norms may not be sufficient to prevent minors from accessing online gaming platforms. Additionally, only time will tell how effective the proposed SRO will be in regulating the industry.
To sum up, the government’s move to regulate the online gaming industry in India is a welcome development, given the potential harms associated with online gambling. However, there is still much work to be done to ensure that the regulations are effective and that they protect the interests of all stakeholders, including players, gaming companies, and the wider public.
