: Govt proposes self-regulation for online gaming #FinanceIndia #StockMarketNEWS #Business New Delhi: The government has proposed self-regulatory bodies for online gaming companies operating in India

@StockMarketNEWS Wed 04 Jan, 2023

Posted in: #FinanceIndia #StockMarketNEWS #Business

Govt proposes self-regulation for online gaming #FinanceIndia #StockMarketNEWS #Business
New Delhi: The government has proposed self-regulatory bodies for online gaming companies operating in India in a draft amendment to IT rules, but will not allow betting.

The draft online gaming rules issued on Monday proposed verification of users and measures to safeguard users against the risk of gaming addiction and financial loss.

During a briefing on the rules proposed, Minister of State for Electronics and IT Rajeev Chandrasekhar said that self-regulatory organisations will develop filters and tests required to decide permissible gaming, be it a game of chance or game of skills or anything else.

“The intermediary shall, before hosting or publishing or advertising an online game for a consideration, ascertain from the online gaming intermediary and verify from the concerned self-regulatory body,??? the draft rules said.

The draft amendments envisage that an online gaming intermediary shall observe the due diligence required under the rules while discharging its duties, including reasonable efforts to cause its users not to host, display, upload, publish, transmit or share an online game not in conformity with Indian law, including any law on gambling or betting.

Chandrasekhar said online gaming companies will not be allowed to engage in betting on the outcome of games under the principle laid in draft rules.

“As per the principles laid under the rule, wagering on the outcome of 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.

“If you bet on an outcome of the game, it is prohibited. The self-regulatory organisations will develop filters and tests required to decide permissible gaming, be it a game of chance or game of skills or anything else,??? he said.

The draft rules suggest additional due diligence for companies by displaying a registration mark on all online games registered by a self-regulatory organisation.

(SRO) and informing its users regarding its policy related to withdrawal or refund of the deposit, manner of determination and distribution of winnings, fees and other charges payable and KYC procedure for user account registration.

On the verification requirement of children, the minister said the finer details will emerge after the consultation is over.

It has also proposed the appointment of key managerial personnel or a senior employee of the gaming firm, who should be an Indian resident, as Chief Compliance Officer and the online gaming platform to have a physical contact address in India published on its website or mobile-based application.