According to the draft rules, online gaming companies won’t be allowed to place wagers on the outcome of games. Minister of State for Electronics and IT Rajev Chandrasekhar stated Monday.
Minister said that all online gaming that is permissible will have to be registered with an organization that will be responsible for the rules.
“Bets on the outcome of a game won’t be permitted, as per the rules.” Chandrasekhar stated that all online gambling companies must register with the self-regulatory organization, which will determine the actions required in accordance to the rules.
The Ministry of Electronics and IT published draft rules for online gambling companies and invited comments by January 17.
According to the draft online gaming rules, the government proposed a self-regulatory system, which would require players to verify their address and provide physical Indian addresses for online gaming companies.
The new IT rules for social media platforms in 2021 will cover online gaming companies.
Online gambling platforms must comply with all laws, even those that relate to betting or gambling.
It is illegal to place bets on the outcome of a game. Chandrasekhar stated that self-regulatory organizations will create filters and tests to determine permissible gaming.
He stated that the rule’s objective is to encourage innovation and grow online gaming.
“We aren’t policing. Online gaming is a USD 200 billion industry. India is a country with a lot of potential for startups and investments. Chandrasekhar stated that our goal is to see more investments come in and help the gaming sector grow.
Draft rules require companies to display a registration mark on any online games registered by a self regulatory organisation (SRO). This will inform its users about its policy regarding withdrawals or refunds of deposits, methods of determination, distribution of winnings and KYC procedures for account registration.
The minister spoke out about the verification requirement for children and said that the finer points will be determined after the consultation.