The Minister of State for Electronics and IT, Rajeev Chandrasekhar, announced on Tuesday that industry bodies cannot become self-regulatory organizations to regulate the online gaming industry. He stated that the watchdog for online gaming must be independent from the influence of industry players.
The government had previously proposed a self-regulatory mechanism for online gaming companies under draft rules for online gaming. However, Chandrasekhar clarified that “it is wrong to assume that an industry body will automatically become an SRO (self-regulatory organization). Any industry body will not be SRO. It will be a body representing all the stakeholders.” He added that the SRO will consist of representatives from children, parents, players, government, and gaming intermediaries. All gaming companies that are permitted under the new rules will need to register with the SRO.
The Ministry of Electronics and IT has extended the last date for public comments on the proposed rules to January 25th, from January 17th, which was the original date set. Chandrasekhar also stated that both games of skills and games of chance can be permitted online, but betting, which is based on the outcome of real-life games, will not be allowed.
The government has proposed a self-regulatory mechanism, mandatory verification of players, and physical Indian addresses for online gaming companies, according to the draft online gaming rules. Online gaming companies will fall under the new IT rules that were issued in 2021 for social media platforms.
Chandrasekhar has conducted extensive consultations with parents, students, and educationists over the draft rules for online gaming, in order to address concerns and gather suggestions on fine-tuning the regulations. He expects the new rules to be notified by January 31st.
