Self-Regulatory Organizations to Oversee Online Games, Wagering Banned under New IT Rules

India's government has recently announced new Information Technology rules, according to which self-regulatory organizations (SROs) will be responsible for determining the permissibility of online games. Union Minister of State for the Ministry of Electronics and Information Technology, Rajeev Chandrasekhar, emphasized on Thursday that betting and wagering would remain prohibited under these new regulations.

The updated online gaming rules, implemented on April 6, were devised to address the growing concerns posed by online gambling and betting platforms that have been rapidly spreading throughout India. Chandrasekhar mentioned that the rules were crafted to maintain an "open, safe, trusted, and accountable" internet in India. The regulations were designed to provide clarity on the permissible aspects of online gaming, as well as to offer opportunities for startups in the industry.

As per the new rules, the permissibility of online games will be determined by SROs, which will assess the involvement of wagering in the games. Impermissible games will be identified as those containing wagering elements. Chandrasekhar also revealed that multiple SROs will ensure consistency in the regulations. Additionally, the rules will address misinformation by setting up a fact-checking agency to monitor content related to the government. Intermediaries hosting flagged content will no longer receive Section 79 protection.

The newly introduced rules aim to provide uniformity and certainty, as various startups have previously faced challenges with differing state regulations. These regulations are part of the government's commitment to maintaining an open, safe, trusted, and accountable internet environment within the country.