Introduction:
The Indian online gaming industry has experienced remarkable growth, with increasing user engagement and significant investments. However, due to concerns such as cyberbullying, security breaches, inappropriate content, and ethical issues, there has been a need for government regulation, particularly in games involving real money. Recognizing the surge in online gaming during the pandemic, the Indian Central Government has introduced the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023. These rules aim to regulate online games effectively, ensuring user safety and appropriate content. This article analyzes the amendment and the steps taken by the government to regulate an industry that has remained largely unregulated.
Regulating Online Gaming: The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 were initially implemented to combat harmful content on social media. Recognizing the expansion of online gaming, the government introduced the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023. These rules establish an online gaming self-regulatory body responsible for regulating online games. The amendment defines key terms such as “online game,” “online gaming intermediary,” “online real money game,” “permissible online game,” and “permissible online real money game.”
Online Gaming Self-Regulatory Body: The online gaming self-regulatory body is an entity empowered to verify an online real money game as permissible. To qualify as a self-regulatory body, an entity must meet specific criteria, including being a registered company under the Companies Act, 2013, representing the gaming industry, promoting responsible gaming, and having a reputable Board of Directors. The government can designate multiple self-regulatory bodies as necessary.
Role, Functions, and Powers of Self-Regulatory Bodies: Upon receiving an application, the online gaming self-regulatory body can declare an online real money game as permissible after conducting necessary inquiries. The body ensures compliance with the rules, including provisions related to wagering, age restrictions, and compliance frameworks. While designing a verification framework, the body must include measures to protect India’s sovereignty and integrity, safeguard users against harm, ensure child safety through age ratings, prevent gaming addiction, and address financial loss and fraud.
Other Responsibilities of Self-Regulatory Bodies: The self-regulatory body is required to maintain an updated list of permissible online real money games, including verification details. It must also disclose its members’ information and suspend or revoke verification if a game fails to comply with the rules. The body should establish a grievance redressal framework and provide contact details for lodging complaints. The Grievance Officer must acknowledge complaints within 24 hours and resolve them within 15 days.
Due Diligence by Online Gaming Intermediaries: Online gaming intermediaries, which enable users to access online games, must adhere to strict due diligence requirements. They must publish their rules, privacy policies, and user agreements, ensuring compliance. Intermediaries are responsible for preventing the hosting, sharing, or publishing of harmful or infringing content. They must also follow procedures for withdrawal, winnings, user identification, and protection of user deposits. Compliance reports, handling government orders, and informing users of regulatory changes are additional obligations.
Grievance Redressal Mechanism: Online gaming intermediaries must appoint a Grievance Officer to handle user complaints regarding rule violations. The officer should acknowledge complaints within 24 hours and resolve them within 15 days. The intermediary must prominently display the Grievance Officer’s name, contact details, and the complaint mechanism on their website and mobile application. If a complaint involves invasive content, the intermediary must take measures to restrict access or remove it. Complaints should be trackable through a unique ticketing system.