The government has notified a new set of rules for the online gaming sector in a bid to prohibit betting and wagering on internet platforms. As per the new rules, the industry has to set up self regulatory bodies to govern games that include real-time money.
These bodies has to certify if a game that involves money is permissible or not. As per Business Standard, all online real-money games and the online gaming intermediary that enable access to such online real-money games must display a demonstrable and visible verification mark, stating the game is verified by the SRB consistent with the new rules.
The regulatory body will have a window of 3 months to decided if the game is permissible or not. It can rely on the information provided by the applicant for verification and declare the real-money game as permissible for a period not exceeding three months. Before accepting any cash deposits on the platform, the self regulatory body has to do a full KYC similar to the one followed by entities regulated by the Reserve Bank of India.
As per the notified rule set, the body has to appoint a chief compliance officer, a nodal contact person for coordination with law enforcement agencies, and a resident grievance officer. The companies offering real-money games should have a physical contact address in India published on their website or mobile application. Gaming platforms are also forbidden from financing by themselves.
The composition of the regulatory body includes experts from the online gaming industry, education, psychology, information and communications technology, and child rights organisations.
Online gaming platforms have largely welcomed the new set of rules notified by the government.