SYLLABUS

GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. 

Context: The Ministry of Electronics and Information Technology (MeitY) has recently released draft rules for online gaming in India.

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• The Ministry has invited public feedback on these rules until October 31, 2025, marking a significant move to regulate the burgeoning online gaming sector amid concerns of social harm, addiction and national security.

Key Provisions

• Regulatory Authority:
  The draft proposes the establishment of the Online Gaming Authority of India as the apex regulatory body, headed by a chairperson and five members from various ministries.
  This Authority will be empowered to register games, issue directions, impose penalties, and monitor compliance with the act and the rules.

• Scope and Restrictions:
  The draft rules will operationalise the Promotion and Regulation of Online Gaming Act, 2025, which prohibits all forms of online money games such as poker and fantasy sports, while only allowing “online social games” and e-sports.
  The Authority will have discretion to classify games and can revoke registration if a game’s model evolves into a money game through changes in its monetisation or reward structure.

• Registration Requirement: 
  All online gaming companies will be required to register with the Authority to operate legally in India.
  They must disclose their revenue models, which cannot involve stakes, wager, or betting, but may include advertisements, subscription fees, or one-time access charges.

• User Protection and Compliance:
  Platforms must conduct stringent due diligence, including mandatory Know Your Customer (KYC) norms, certificates for random number generation to ensure game fairness, and no-bot certifications to prevent automated play.
  Each company must appoint Compliance, Nodal, and Grievance Officers responsible for enforcement of regulations and dispute resolution.

• Grievance Redressal Mechanism:A three-tier grievance redressal system is mandated:

1. Internal grievance redressal by the game provider,
2. Appeal to the Grievance Appellate Committee under the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, and
3. Final appeal to the Online Gaming Authority.

• Codes of practice:
  The draft rules call for the Ministry of Information and Broadcasting (MIB) to issue codes of practice or guidelines for categorising online social games for recreational, educational, skill development oriented, ensuring safe and age-appropriate content.

• Penalties for Violations:
  Violations of the Act will be treated as non-bailable offenses, and the entire company staff involved in facilitating breaches will be held liable.
  Penalties will be proportionate to the unlawful gains and harm caused to users, ensuring deterrence against non-compliance.

Sources:
Indian Express
Hindustan Times
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