Recently, the Ministry of Electronics and IT (MeitY) has released the Draft Rules for Online Gaming.
The proposed rules have been introduced as an amendment to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021.
Online games will have to register with a self-regulatory body.
Online gaming firms will be required to undertake additional due diligence, including KYC of users, transparent withdrawal and refund of money.
Gaming companies will also have to secure a Random Number Generation Certificate.
Online gaming companies will not be allowed to engage in betting on the outcome of games.
Similar to social media and e-commerce companies, online gaming platforms will also have to appoint a compliance officer who will ensure that the platform is following norms.