The Government notifies new rules for online gaming, to appoint multiple SROs

by  EVENTFAQS Bureau Industry Watch | April 7, 2023 | News

Government of India Esports

The government releases new rules for online gaming which prohibits any game that involves betting and wagering, and entails a framework of multiple self-regulatory organizations (SROs) to determine whether  real-money game is permitted or not.

In exercise of the powers conferred by sub-section (1) and clauses (z) and (zg) of sub-section (2) of section 87 of the Information Technology Act, 2000 (21 of 2000), the Central Government hereby makes the following rules to further amend the Information Technology.

The newly formed rules say:

‘online game’, means a game that is offered on the Internet and is accessible by a user through a computer resource or an intermediary.

Explanation: In this clause, ‘Internet’ means the combination of computer facilities and electromagnetic transmission media, related equipment and software comprising the interconnected worldwide network of computer networks that transmits information based on a protocol for controlling such transmission.   

‘online real money game’, means an online game where a user makes a deposit in cash or kind with the expectation of earning winnings on that deposit.

Explanation: In this clause, ‘winning’ means any prize, in cash or kind, which is distributed or intended to be distributed to a user of an online game based on the performance of the user and in accordance with the rules of such online game.   

Rohit Agarwal, Founder & Director, Alpha Zegus said, "Finally - video games & real money gaming have been given two separate identities! It was a debate that has gone on for quite a while now, and it's a relief that it's finally seen the light of day. The two industries can now have their own policies, guidelines, and laws that regulate them, and the reported numbers can also stay distinct. Great move by the government!"

For editorial related queries, reach us at edit@eventfaqs.com