Gaming companies have unanimously welcomed the online gaming rules notified by Indian government on Thursday April 6.

The Ministry of Electronics and Information Technology (MeitY) today, notified the amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 in relation to online gaming. These amendments were under discussion since January when MeitY has released draft regulations on online gaming. 

Self-regulatory bodies

Some of the major changes under the new rules include clarification on the definition of online gaming and setting up of SRBs or self-regulatory bodies. SRBs will verify that a game does not consist of wagering on any outcome and complies with gaming rules. Further, the rules defined online game as a “game that is offered on the internet and is accessible by a user through a computer resource or an intermediary.“

Watershed moment

Commenting on the development, Sai Srinivas, CEO and Co-Founder, MPL said, “The release of the new online gaming rules is a watershed moment for the industry, as it recognizes online gaming intermediaries and distinguishes them from gambling. The uniform legal framework provided by these rules will boost investor confidence. We anticipate that this will also help reduce regulatory fragmentation at the state level as also mentioned by the Hon’ble Minister, create a more stable business environment and weed out gambling platforms.”

Adding to this, Trivikraman Thampy, Co-founder, Co-CEO of Games24x7 said, “The clarity provided by the rules will bolster investor confidence in the sector furthering opportunities for growth and innovation for legitimate domestic gaming platforms. The regulatory framework will also aid in arresting the proliferation of offshore and illegal gambling and betting platforms in India, which operate with little regard for consumer interest.” 

Further, Paavan Nanda, Co-Founder, WinZO games noted that the overall recognition of Online Games of Skill by way of inclusion as the third form of intermediary after Social Media, and content-related publishers/OTT players, is beneficial for GST differentiation from gambling, providing the required stability of regulation, and facilitating a level playing field for all games of skill.

Reduces ambiguity

Since last year, online gaming companies have been under the scrutiny of GST Intelligence department. Around 65-70 gaming companies have been probed by Directorate General of GST Intelligence (DGGI) to ensure that there is no money laundering activities were carried out at these companies and ensuring standards of invoicing are being met.

Industry organisations like Federation of Indian Fantasy Sports (FIFS) and All India Gaming Federation (AIGF) also spoke in the favour of the new gaming rules and said these rules are expected to reduce ambiguities in the industry. “These rules will go a long way in promoting consumer interest while helping the industry grow responsibly and transparently and will also help in curbing the menace of anti-national and illegal offshore gambling sites, which have been proliferating in the last few years,” said Roland Landers, CEO, All India Gaming Federation.

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