The Ministry of Electronics and Information Technology (MeitY) has introduced an amendment to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, aimed at regulating online real money games.
What are Online Real Money Games?
- Online real money games involve players wagering actual money with the expectation of winning more money in return.
- The games encompass a wide range of activities, including casino-style games like poker, blackjack, and slot machines, as well as sports betting, fantasy sports, and other forms of online gaming involving monetary transactions.
- The popularity of such games has surged in India, raising apprehensions about the need for effective regulation to address potential adverse impacts on users.
- Concerns include the risk of addiction among players and the potential for significant financial losses, which can have serious consequences for individuals and their families.
- The amendment to the Information Technology Rules aims to introduce measures for the proper regulation of these online real money games to protect users and ensure responsible gaming practices.
What are the New Rules?
- Media entities and online advertisement intermediaries are advised not to promote or carry advertisements of betting platforms due to their illegal status in India.
- Betting and gambling activities are prohibited, and promoting them on media platforms is against the regulations.
- Specific betting platforms promoting sports leagues on their websites may be in violation of the Copyright Act 1957.
- Real money gaming platforms are required to register with a Self-Regulatory Body (SRB) as per the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023.
- Three SRBs will be established to determine whether a game is “permissible” or not.
- Games deemed “permissible” by the SRB will be allowed to operate legally, even if they involve deposits for potential winnings.
- Video games that do not involve real money transactions do not need to approach an SRB.
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