Jan 4, 2023: The government recommended a number of due diligence obligations, including disclosing to customers any regulatory body registrations, any titles they offer, and user data protection policies.
On Monday, the Ministry of Electronics and Information Technology (Meity) suggested bringing online gambling under its information technology regulations, proposing a mainly self-regulatory approach with compliance standards like user registration and a complaint handling system.
The law will apply to games involving real money or a deposit of any amount, but the guidelines go on to make it abundantly clear that it will not apply to activities that can be categorised as gambling, which are the responsibility of the individual states.
The government's attention to the industry comes as forecasts indicate that gross sales will reach Rs 57,925 crore by 2026, according to news agency Reuters, which also cited consultant Redseer.
Some states objected to the idea of a nationwide ban on internet gaming and betting, which was suggested by an inter ministerial task force that was established in May of last year.
The government recommended a number of due diligence obligations, including disclosing to customers any regulatory body registrations, any titles they offer, and user data protection policies.
The gaming supplier must also advise users of the rules governing withdrawals and refunds of deposits, as well as how winnings are calculated and any associated fees.
According to the rules, a provider will also be required to "identify the user and verify his identity" at the time of sign-ups using a method specified by the Reserve Bank of India. Additionally, the rules permit gamers to voluntarily display their verification within the ecosystem, much like the government has suggested for social media users. (source: Hindustan times)
Following a lengthy discussion about whether platforms should be regarded as intermediaries or publishers, the IT ministry was chosen last week as the primary governance agency for online gaming.