The government, on Tuesday, has extended the date for receiving comments on the proposed gaming rules from stakeholders till January 25, and said the new rules would be ready by January 31.
The Ministry of Electronics and IT (MeitY) has fixed January 17 as the last date for public comments on the proposed rules. It has proposed a self-regulatory mechanism to regulate online gaming companies under the draft rules for online gaming.
Speaking to stakeholders here, Rajeev Chandrasekhar, Minister of State for Electronics and IT, said industry bodies cannot become self-regulatory organisations to regulate online gaming, and the watchdog has to be away from the dominance of industry players.
In an open house consultation with online gaming companies on the proposed rules, Chandrasekhar said: “It is wrong to assume that an industry body will automatically become an SRO (self-regulatory organisation). Any industry body will not be SRO…it will be a body representing all the stakeholders.”
He said both games of skills and games of chance can be permitted online, but betting, which is based on the outcome of real-life games, will not be allowed.
The Minister also said that SRO will comprise representatives of children, parents, players, government, and gaming intermediaries. All gaming companies that can be allowed under the new rules will need to register with SRO.
Industry representatives have welcomed the government’s steps and clarity on the proposed rules.
According to Trivikraman Thampy, Co-Founder and CEO, Games24x7: “The draft rules provide the much-needed policy clarity for online gaming in India. Once finalised, these rules will result in significantly higher investor interest in the space which in turn will lead to more growth, innovation and employment.”
The draft rules have struck the right balance between consumer protection and creating a sustainable business environment for the Indian online gaming industry, he said.
“The rules are a step in the right direction to stop the proliferation of offshore and illegal gambling and betting platforms in India. Many of the rules that have been proposed like KYC norms, age verifications, and other responsible gaming practices are already being followed by us as part of the code of conduct of E-Gaming Federation (EGF) of which we are members,” he added.
Some of the additional recommendations shared by the industry include registration of multiple SROs which already exist in the industry, creating a grievance redressal mechanism for gaming operators and allowing registration of online games in a two steps.
