New IT rules turning point for online gaming industry, say experts

NEW DELHI: The clear definition of real-money and permissible games will be crucial in catalysing the growth of legitimate online gaming industry players, said the industry experts on online gaming rules notified by the government on April 6, 2023.

They called the framework a positive turning point for the industry. “This framework will allow us to innovate and operate freely while ensuring that the necessary guardrails are in place to safeguard the users.  Overall, this is the best possible framework and the way ahead for online gaming firms in India,” said Deepak Gullapalli, founder & CEO, head of Digital Works.

The government notified regulations for the industry that prohibits games that involve wagering or betting with real money. It would establish three self-regulatory organisations (SROs) that will approve games that comply with the rules for operation in the country. As per the new IT rules, gaming platforms must not offer, publish, or share online games that have harmful or banned content. They will have to verify the identity of online gamers. The purpose of the move is to prevent self-harm or psychological harm from online gaming.

“The new online gaming rules is a watershed moment for the industry, as it recognises online gaming intermediaries and distinguishes them from gambling,” said Sai Srinivas, CEO and co-founder, MPL. He said the uniform legal framework provided by these rules will boost investor confidence and will also help reduce regulatory fragmentation at the state level.  Tejas Karia, partner & head, Arbitration, Shardul Amarchand Mangaldas, said the new rules are significant from the perspective of classifying “intermediaries” for availing immunity from liability depending on the content hosted by them.