Navigating the New Rules of Online Gaming in India

Written by: Sriman Mishra, 5th Year Student, KIIT Bhubaneshwar

In a significant move on April 6, 2023, the Ministry of Electronics and Information Technology (MeitY) introduced amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. These changes, aimed at regulating online gaming in India, provide a comprehensive framework to ensure that the sector operates within strict legal and ethical boundaries.

Imagine logging onto your favorite online game, knowing that behind the scenes, stringent rules are in place to protect you and ensure fair play. This is the reality the new amendments seek to create. But what exactly are these rules, and how do they impact the gaming landscape?

The Key Players and Their Roles

First, let’s meet the key players in this new framework. We have the Grievance Officer, a dedicated individual appointed to handle user complaints and grievances. Then there’s the Online Gaming Intermediary, which is any platform that enables users to access one or more online games. Adding to the mix is the Online Gaming Self-Regulatory Body, an entity designated to oversee and verify online real money games.

But what sets the stage for these characters is the Online Real Money Game. Unlike a typical game, here players deposit money with the hope of winning more. However, not all games with financial stakes are permissible. Only those verified by a self-regulatory body can be classified as Permissible Online Real Money Games.

Due Diligence: The Backbone of Integrity

At the heart of these amendments is a strong emphasis on due diligence. Intermediaries must ensure they inform users about their rules, regulations, and privacy policies. But it doesn’t stop there. They must actively monitor and ensure that their platforms are free from obscene, misleading, or illegal content. This includes unverified online games and advertisements promoting them.

For online gaming intermediaries, the stakes are even higher. They are required to provide information or assistance to government agencies within 24 hours upon receipt of a lawful order. This rapid response requirement underscores the commitment to maintaining a safe and compliant gaming environment.

Grievance Redressal: Ensuring Fair Play

Imagine facing an issue while gaming online. The amendments ensure that intermediaries must publish the contact details of their Grievance Officer, who will acknowledge complaints within 24 hours and resolve them within 15 days. This swift resolution process ensures that players feel heard and their issues addressed promptly.

If you’re not satisfied with the Grievance Officer’s decision, there’s an appeal process in place. The Grievance Appellate Committee allows aggrieved persons to seek a higher authority’s intervention, ensuring that justice is accessible and transparent.

 Stepping Up for Significant Intermediaries

For significant social media and online gaming intermediaries, the amendments introduce additional layers of due diligence. These intermediaries must appoint a Chief Compliance Officer, a nodal contact person, and a Resident Grievance Officer, all residents of India. They must also publish periodic compliance reports and maintain a physical address in India for communication purposes.

One of the standout requirements is the implementation of user verification mechanisms. This means that players using Indian mobile numbers can voluntarily verify their accounts, receiving a visible mark of verification. This measure aims to enhance trust and transparency within the gaming community.

Verifying Online Real Money Games: The Gatekeepers of Fair Play

The amendments empower the Ministry to designate multiple self-regulatory bodies responsible for verifying online real money games. These bodies ensure that games do not involve wagering and comply with all relevant laws. Verified games are then listed and regularly updated by these bodies, providing a clear and transparent framework for permissible online real money games.

The Rules at a Glance

Rule 3: Due Diligence by Intermediaries

  • Inform users of their rules, regulations, privacy policy, and user agreement in English or any language specified in the Eighth Schedule to the Constitution.
  • Ensure users do not host, display, upload, modify, publish, transmit, store, update, or share any information that is obscene, pornographic, invasive of privacy, deceptive, misleading, or in violation of any law.
  • Disallow the hosting of unverified online games or advertisements promoting them.
  • Inform users of changes to policies annually and within 24 hours for online gaming intermediaries enabling access to permissible online real money games.
  • Provide information or assistance to government agencies within 72 hours, or 24 hours for online gaming intermediaries.

Rule 3A: Grievance Redressal Mechanism

  • Publish the name and contact details of the Grievance Officer on their website or app.
  • Acknowledge complaints within 24 hours and resolve them within 15 days.
  • Act on requests for removal of certain content within 72 hours.
  • Receive and acknowledge orders, notices, or directions from the government, competent authorities, or courts.

Rule 3B: Appeal to the Grievance Appellate Committee

  • Aggrieved persons can appeal to the Grievance Appellate Committee within 30 days of the Grievance Officer’s decision.
  • Compliance with orders passed by the Grievance Appellate Committee and reporting on the website.

Rule 4: Additional Due Diligence for Significant Intermediaries

  •  Appoint a Chief Compliance Officer, nodal contact person, and Resident Grievance Officer, all residents in India.
  • Publish periodic compliance reports detailing complaints received and actions taken.
  • Maintain a physical contact address in India for receiving communications.
  • Implement a mechanism for the receipt of complaints and grievances, providing a unique ticket number for tracking.
  • Enable voluntary user verification for accounts using an Indian mobile number, with a visible mark of verification.
  • Display a visible mark of verification for permissible online real money games.
  • Include policies related to withdrawal or refund of deposits, verification of user identities, and measures for protecting user deposits.

Rule 4A: Verification of Online Real Money Game

  • Designate multiple self-regulatory bodies for verifying online real money games.
  • Self-regulatory bodies to ensure games do not involve wagering and comply with relevant rules.
  • Maintain and update lists of permissible online real money games and members.
  • Implement a framework for verifying online real money games, including national interest safeguards, user harm safeguards, child protection measures, and addiction and financial risk safeguards.

Rule 4B: Applicability of Certain Obligations After an Initial Period

  •  Obligations under Rules 3 and 4 effective three months after the designation of at least three self-regulatory bodies.
  •  Central Government may specify an earlier compliance date if necessary.

Rule 4C: Obligations for Non-Real Money Games

  • Central Government may impose certain obligations on intermediaries for non-real money online games to protect sovereignty, security, public order, and prevent user harm.
  •  Provisions of Rule 4A apply to these games as they do to permissible online real money games.

Looking Ahead: The Road to Compliance

The obligations under the new rules will come into effect three months after the designation of at least three self-regulatory bodies. However, the Central Government reserves the right to specify an earlier compliance date if deemed necessary. Additionally, certain obligations can be imposed on intermediaries for non-real money online games to protect sovereignty, security, public order, and prevent user harm.

Conclusion

In conclusion, the amendments to the IT Rules aim to create a safer and more controlled online gaming environment in India. By imposing strict due diligence, user protection measures, and legal compliance standards, these changes underscore the importance of transparency and responsibility in the rapidly growing online gaming industry.

The amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, aim to establish a comprehensive framework for regulating online gaming in India. These rules ensure that online gaming intermediaries and self-regulatory bodies adhere to strict standards of due diligence, user protection, and compliance with legal requirements. By introducing measures for verifying permissible online real money games, safeguarding user interests, and maintaining transparency, the amendments seek to create a safer and more controlled online gaming environment in the country.