India's Gaming Rules: Regulating Online Gaming at the Federal Level

 

 Introduction:

India has taken a significant stride in regulating online gaming by amending the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, known as the "Gaming Rules." These rules, notified on April 6, 2023, mark a crucial development in establishing federal-level regulations for online gaming in India. This article explores the legal provisions, key sections, and provides examples to illustrate the implications of these regulations.

1. Legal Provision:

The Gaming Rules fall under the framework of the Information Technology Act, 2000, which governs various aspects of digital activities in India. The amendments aim to bring online gaming platforms within the purview of legal regulations to ensure fair play, protect users, and promote responsible gaming practices.

2. Key Sections:

2.1 Registration and Compliance Requirements:

Section 4 of the Gaming Rules mandates that online gaming platforms must register with the appropriate regulatory authority in India. They are required to comply with specific obligations, such as implementing age verification mechanisms, establishing a grievance redressal mechanism, and adopting appropriate measures to prevent fraudulent activities.

2.2 User Protection Measures:

Section 5 of the Gaming Rules focuses on safeguarding the interests of users. It requires gaming platforms to provide clear and transparent terms and conditions, disclose the odds of winning, and ensure the security of user information. Additionally, platforms must enable users to set spending limits and offer options for self-exclusion or cooling-off periods.

2.3 Prohibition of Certain Types of Games:

Section 6 of the Gaming Rules identifies certain types of online games that are prohibited. This includes games that simulate gambling, games involving real-money wagers, and games that are determined predominantly by chance rather than skill. The aim is to prevent exploitation and protect vulnerable users from potential harm associated with these forms of gaming.

3. Examples:

To understand the practical implications of the Gaming Rules, let's consider a few examples:

3.1 Age Verification:

Online gaming platforms now need to implement robust age verification mechanisms. For instance, a popular fantasy sports platform may require users to provide their date of birth and submit a government-issued identification document for verification before participating in contests involving real-money wagers.

3.2 Responsible Gaming Measures:

To promote responsible gaming practices, a multiplayer online card game platform must introduce features like spending limits, session duration reminders, and options for users to self-exclude temporarily or permanently. This empowers users to maintain control over their gaming habits and prevents excessive or compulsive gaming behavior.

3.3 Prohibited Games:

An online casino platform offering games predominantly based on chance, such as slot machines or roulette, would need to cease operating in India. The focus of the Gaming Rules is to discourage forms of gaming that closely resemble gambling and may lead to potential addiction or financial loss for users.

4. Grievance Redressal Mechanism for Complaints against Online Games under India's Gaming Rules

Tier 1 - Grievance Redressal at the Online Gaming Intermediary Level:

Publishing Grievance Officer's details: Online gaming intermediaries are required to prominently display the name of their Grievance Officer on their website and mobile application. This ensures easy access for users to register complaints and seek redressal.

Timely complaint resolution: Intermediaries must acknowledge complaints within 24 hours of receipt and endeavor to resolve them within 15 days. This emphasizes the importance of prompt response and efficient resolution of user grievances.

Swift action for specific content: Intermediaries are obligated to act promptly on requests to remove information or links related to specific rules mentioned in the Gaming Rules. Additionally, requests to remove or disable access to content that is obscene, depicts nudity or sexual acts, or contains artificially morphed images must be addressed within 24 hours.

Tier 2 - Grievance Appellate Committees (GAC):

Appeal process: Users who are dissatisfied with the decision of the intermediary's Grievance Officer or whose grievances remain unresolved within the prescribed time period can appeal to the Grievance Appellate Committee (GAC) within 30 days.

Time-bound resolution: The GAC is expected to resolve the appeals ideally within 30 days, ensuring a timely and efficient dispute resolution process.

Digital mode of communication: The entire grievance redressal process, including filings and communication, is conducted digitally, facilitating convenience and expediency.

Compliance with GAC orders: Both the online gaming intermediaries and Social Responsibility Bodies (SRBs) are required to comply with the orders issued by the Grievance Appellate Committee.

5. Obligations for Online Games other than Online Real Money Games:

Verification by SRB: The Central Government has the power to direct intermediaries not to offer any online game that has not been verified by the Social Responsibility Bodies (SRBs). This verification process ensures that online games meet the prescribed standards.

Advertising restrictions: Intermediaries, including social media platforms, app stores, and advertisers, are prohibited from advertising non-permissible online games or real money gaming intermediaries offering such games. This restriction aims to control the promotion of potentially harmful or unauthorized games.

Due diligence obligations: Intermediaries have a responsibility to check with SRBs regarding the permissibility of online games before hosting, publishing, or advertising them. This ensures that intermediaries exercise due diligence in promoting only compliant games.

6. Conclusion:

The amendment of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, through the Gaming Rules, is a significant step toward regulating online gaming at the federal level in India. These rules aim to establish a framework for fair play, user protection, and responsible gaming practices. By implementing registration and compliance requirements, user protection measures, and prohibiting certain types of games, India seeks to strike a balance between facilitating the growth of the online gaming industry while ensuring the well-being of users.

The Grievance Redressal Mechanism outlined in the Gaming Rules provides an effective framework for addressing complaints against online games in India. The tiered approach, involving the intermediary level and the Grievance Appellate Committees, ensures that user grievances are promptly acknowledged and resolved. Additionally, the obligations imposed on intermediaries regarding verification, advertising restrictions, and due diligence contribute to creating a safer and more responsible online gaming environment. The introduction of this grievance redressal mechanism marks a significant step in regulating online gaming and protecting the interests of users in India.

 

Article Compiled by:-

Mayank Garg

(LegalMantra.net Team)

+91 9582627751

Disclaimer: Every effort has been made to avoid errors or omissions in this material in spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition In no event the author shall be liable for any direct indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information Many sources have been considered including newspapers, Journals, Bare Acts, Case Material. Charted Secretary, Taxmaan etc.

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