The Indian government has recently published a set of rules aimed at regulating online gambling in the country. These rules, part of the amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, establish a framework for the oversight of online gambling through the creation of self-regulatory bodies. The Ministry of Electronics and IT has invited public consultation on the proposed amendments until January 17.
Defining Online Gambling and Compliance:
The amendments provide a clear definition of online gambling, categorizing it as any game played over the internet where players deposit money with the expectation of earning winnings. The government reserves the right to specify which games fall under these regulations. Importantly, the rules emphasize that any online game offered must not violate existing laws, including state-wide gambling bans. This ensures that online gambling activities comply with the legal framework in place.
Introduction of Self-Regulatory Bodies:
Rather than establishing a government regulator, the amendments propose the creation of self-regulatory bodies composed of online gaming businesses. These bodies would be responsible for formulating rules and regulations to govern online gambling. The board of each self-regulatory body should include members from diverse backgrounds, including an independent eminent person from the field of online gaming, sports, or entertainment, a representative of online game players, a psychology or consumer education expert, and a public policy expert appointed by the central government of India.
Safeguarding Users and Preventing Financial Crimes:
The primary objective of the self-regulatory bodies is to safeguard users against potential harm, including addiction, and to protect children from exposure to online gambling. Additionally, these bodies are expected to implement measures to prevent financial crimes associated with online gambling. To ensure user safety and compliance, the bodies should require member platforms to verify user identities, conduct know-your-customer checks, establish a complaints process, and maintain a contact address within India.
Government Intervention and Suspension of Registration:
In the event that a self-regulatory body fails to establish sufficient standards or address non-compliance, the central government may direct the body to rectify the situation. If necessary, the government has the authority to suspend the registration of the non-compliant body. This provision emphasizes the government’s commitment to ensuring effective regulation and adherence to the prescribed guidelines.
Growing Concerns and Regulatory Framework:
The need for comprehensive regulation of online gaming in India has been a topic of concern for policymakers. The rising popularity of online gambling prompted discussions on the importance of a regulatory framework. Last year, MP Sushil Kumar Modi called for the establishment of a comprehensive regulatory framework for online gaming. The introduction of these rules reflects the government’s proactive approach to address the challenges associated with online gambling.
Crackdown on Betting Ads:
In a related development, the Indian government issued an advisory statement in June, cracking down on betting advertisements from overseas operators. Print and electronic media were urged to refrain from publishing ads for online betting platforms. This move aligns with the government’s efforts to maintain control over gambling activities and protect consumers from potential risks associated with unregulated operators.
The Indian government’s introduction of new rules to regulate online gambling represents a significant step towards establishing a structured framework for the industry. By emphasizing the creation of self-regulatory bodies, the government aims to ensure responsible and safe online gambling practices while safeguarding users from harm. The proposed rules underscore the government’s commitment to maintaining compliance with existing laws and preventing financial crimes. With the ongoing public consultation, stakeholders in the online gambling industry have the opportunity to provide input and shape the final regulations. This proactive approach by the Indian government lays the foundation for a well-regulated online gambling landscape that balances consumer protection with industry growth.