The Ministry of Electronics and Information Technology (MeitY) has recently introduced changes to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, in order to maintain control over online real money games. This move came as a response to the growing popularity of such games in India and increasing concerns surrounding their potential negative effects, such as financial loss and addiction.
Understanding Online Real Money Games
Online real money games refer to digital platforms where players stake actual money with the hope of winning more. These platforms include a variety of offerings from casino-stylized games like poker, blackjack, and slot machines to sports betting and fantasy sports. Recently, India has seen an upsurge in the use of these platforms, sparking off debates about their regulation and the adverse impacts they could have on users.
The Newly Introduced Rules
The newly amended rules by the MeitY come with two significant additions aimed at regulating the operation of real money online gaming platforms.
No Promotion of Betting Platforms
Firstly, the amendment cautions media entities, platforms, and online advertisement intermediaries against promoting or carrying advertisements for betting platforms. Given that betting and gambling are classified as illegal activities, any direct or indirect promotion of such activities via these platforms is viewed as a breach of the regulations. A noteworthy instance highlighting this point involves a specific betting platform that was encouraging its audience to watch a sports league on its website, an action that stood in prima facie violation of the Copyright Act 1957.
Registration with Self-Regulatory Body
The second aspect of the amendment dictates that real money gaming platforms will need to register with a Self-Regulatory Body (SRB). This SRB will be charged with determining whether the nature of the game on the platform is “permissible.” It is expected that three SRBs will soon be recognized for this purpose. If a game is not deemed permissible, it will not enjoy the protection of the amendment and could potentially face action from states for being classified as a betting or gambling platform. Conversely, games found to be permissible will receive legal sanction to operate, even if they involve deposits against an expectation of winnings. It should be noted that video games that don’t involve the exchange of money are not required to seek approval from an SRB.
