Context: The government has operationalised the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (as amended) to regulate Online gaming rules, expanding compliance requirements while allowing flexibility for esports and non-real-money games.
- Online gaming in India is governed under the Information Technology Act, 2000, with rules notified under it to regulate intermediaries and digital platforms.
- The amended IT Rules introduce a structured framework for online real money games (RMGs), distinguishing them from casual or free-to-play games and esports.
- The framework does not mandate universal pre-registration of all games; instead, it adopts a selective “determination and registration” approach based on factors like stakes involved and risk level.
- A key institutional feature is the proposed Online Gaming Authority of India (OGAI), which will act as a regulator with powers to classify games, enforce compliance, and issue directions.
- Games are categorized into online real money games (involving stakes), online social games (no stakes), and esports (skill-based competitive gaming).
- The rules expand compliance to intermediaries such as payment gateways, banks, and hosting platforms, requiring them to block or restrict transactions related to illegal gaming activities.
- This effectively makes the payments layer a critical enforcement mechanism, reducing the need for direct bans on platforms.
- The framework introduces a two-tier grievance redressal system, requiring platforms to first address user complaints internally, followed by an appellate mechanism within the government.
- Data localisation provisions require certain categories of gaming platforms to store data in India, especially those offering real money games or handling sensitive user data.
- The rules mandate user safety measures such as age verification, parental controls, limits on deposits and playtime, and safeguards against addiction.
- The framework aims to address concerns like fraud, addiction, and regulatory arbitrage arising from inconsistent state-level laws.
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