Draft rules on online Gaming released

Published on January 04, 2023
Current Context: The Ministry of Electronics and IT (MeitY) has released draft rules for online gaming as an amendment to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. These draft rules provide guidelines and regulations for the online gaming industry in India.
Draft rules on online Gaming released
  • The proposed rules for online gaming, released by the Ministry of Electronics and IT, aim to regulate the industry in India and create a safe and fair gaming ecosystem for users.
  • Draft Rules
    • Self-Regulatory Body: Online gaming companies in India will be required to register with a self-regulatory organization, which will only allow games that it has approved to be legally available in the country. The board of directors for this self-regulatory body will consist of individuals with expertise in online gaming, public policy, IT, psychology, and medicine.
    • Due Diligence: In addition to registering with a self-regulatory body, online gaming companies in India will also be required to implement additional due diligence measures. These measures include performing KYC checks on users to verify their identities, having transparent policies for withdrawing and refunding money, and ensuring that winnings are distributed fairly. The KYC checks must be conducted in accordance with guidelines set by the Reserve Bank of India.
    • Restriction on Betting: Online gaming companies will not be permitted to offer betting services on the outcomes of games.
    • Compliance: They will also need to appoint a compliance officer to ensure that they follow all relevant rules and regulations, and a nodal officer to act as a point of contact with the government and assist law enforcement agencies. In addition, they will need a grievance officer to address and resolve user complaints.
    • RNG and No-Bot Certificate: A Random Number Generation Certificate, which is used to ensure that game outcomes are decided randomly and cannot be predicted, would be required of online gaming companies operating in India. To prove that their platform doesn't use bots or automated processes, they will also need to get a "no bot certificate" from a credible certification organization. These specifications apply to websites that provide card games.
    • These requirements are similar to those that apply to social media and e-commerce companies.

Question:

Q.1 Which ministry has released its Draft guidelines on Online gaming recently?
a. Ministry of Electronic and Information Technology
b. Ministry of Youth Affairs and Sports
c. Ministry of Communications
d. Both 1 and 2

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