New Online Gaming Rules: Meaning and Impact

The Ministry of Electronics and Information Technology (MEITY) introduced ‘new online gaming rules’ on 6th April 2023 suggesting amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 addressing key proposals like self-regulatory body(SRBs), mandatory know-your-customer norms, and a grievance redressal mechanism.

The government started with an initial framework to regulate Real Money Gaming (RMG), which has now evolved into a framework that can regulate the entire online gaming ecosystem for wagering and child addiction. The gaming industry hails the government’s bid to curb misinformation calling it the first step in the direction of recognition of the online gaming market in India. With a huge market potential in India, the framework will help startups/innovators in the gaming industry while prohibiting wagering or betting.

What is an online gaming intermediary?

An online game is one that “is offered on the internet and is accessible by a user through a computer resource. An “online gaming intermediary” means an intermediary that offers one or more than one online game.

What is a Self-regulatory Body (SRB)?

SRB is a non-government self-regulatory body created to facilitate a safer gaming experience.
An SRB will have gamers, child rights representatives and educators. These SRO will evolve to work on ways to allow or deny permissions based on the guidelines in order to prohibit wagering and stop child addiction. These SROs will also safeguard users against the risk of gaming addiction, financial loss and financial fraud.

What should a gaming company needs to do?

• Ensure a robust KYC mechanism for all the players
• Ensure registration with a self-regulatory body
• Random number generator and no bot certificate for fair practices
• Appointment of a compliance officer, nodal officer and a grievance officer
• Inform the users of rules and regulations, privacy policy, refund and withdrawal policies
• Clear terms of distribution of winnings and fees or other charges payable by the user

Impact of these new gaming rules

The introduced rules and regulations are bound to shape the future of the gaming industry in India. This change will be a boost for entrepreneurs and startups to reach their full potential. Here are the 5 things we can expect:

• Recognition: The gaming sector will have its much-due recognition as a key industry with a huge market potential.
• Consistency: With this move from the central government, the rules will clear the air around rules which earlier varied from state to state.
• Fairplay: Installation of SROs in the framework will help companies abide by compliance around AML, player KYC, and reward distribution. 
• Wagering: These rules will clearly set apart the games under the purview of wagering and will help differentiate between permissible games vs not permissible ones.

How is the industry responding to these rules?

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• These rules set apart legit games from untrustworthy ones for the customers.  
• Illegal and harmful games, operated offshore/unrecognized will not get registered with SROs.
• The self-regulatory model addresses the concern of recognition of the ‘games of skill’ by different state governments. 
• This framework will help SRO regulate games for process compliance like player kyc, and no bots to ensure fair play & distribution of rewards.

Safer Gaming Experience with AuthBridge

AuthBridge welcomes the move from the centre and advocates the safety of players as well as businesses in online gaming. We continuously strive to bring trust and transparency to business transactions with the help of data and due diligence.
With our verification solution for online gaming suited for complex individual verification to business due diligence, we have helped a number of gaming clients stay compliant with the norms and offer a safer gaming experience.

Learn how Authbridge played a pivotal role in helping Dream11 grow its player base by 300% this season

Interested in learning how Authbridge can help your company achieve compliance and be future-ready? 

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