GS Paper 2
Syllabus: Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation
Source: TH
Direction: The article is a comprehensive coverage of the draft amendments to the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, which is an attempt to regulate online gaming in India.
Context: The Ministry of Electronics and Information Technology (MeitY) has released draft amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, in relation to online gaming.
Background:
- An inter-ministerial task force established by the MeitY to propose the contours of national-level legislation to regulate online gaming had previously made several recommendations.
- The draft of the proposed amendments has been released based on these.
What changes are being proposed?
- Defines an ‘online game’: A game that is offered on the internet and is accessible by a user through a computer resource if s/he makes a deposit with the expectation of earning winnings.
- Companies offering such online games will be handled similarly to social media companies in terms of regulatory compliances and obligations.
- A self-regulatory body: Online games would be required to register with a self-regulatory body, and only games approved by the authority will be permitted to function lawfully in India. MeitY can recognise and derecognise all self-regulated bodies.
- Mandatory KYC norms: Online gaming companies would be compelled to follow the same rules as entities regulated by the RBI.
- Banning bets on the outcome: Online gaming companies will not be permitted to accept bets on game outcomes.
- Chief Compliance Officer: The platforms are expected to appoint a senior employee, who would coordinate with law enforcement agencies to ensure compliance with their orders.
- Nodal Contact Person: To facilitate the necessary coordination at any point of the day. Grievance redressal: The platforms must have in place an appropriate mechanism for the receipt and resolution of grievances.
Significance of the proposed changes:
- Safeguard the interests of users (especially women and children).
- Addresses the discourse in the sector about the definitions of a ‘game of skill’ (used in the Public Gambling Act (1867) but had not been defined) and a ‘game of chance’. The term ‘game of skill’ had been.
- Endeavours to provide for greater transparency. For example,
- Operators would have to inform the user about the policy related to the withdrawal or refund of their deposit.
- Addiction is to be combated using repeated warning messages while playing a certain game.
- These rules will help curb the menace of anti-national and illegal offshore gambling platforms.
What are some of the concerns?
- The rules group all gaming intermediaries together, regardless of size or risk.
- They all require similar compliances, including the requirement for executives to be based in India.
- This might place an undue burden on young start-ups and make it difficult for global players to launch services in India.
Global practices:
- China has placed strict limits on the time young people may spend playing online games and an online game must obtain approval before its launch.
- In the U.S., Internet casino gaming remains illegal in every state that doesn’t explicitly legalise the games.
- Germany’s “Youth Protection” laws aimed at regulating violent games require developers to replace realistic red blood with a green version.
- Australia has sought to ban games for including depictions of everything from assault to marijuana use.
Conclusion: On the one hand, the proposed rules seek to expand the online gaming market and stimulate innovation, while on the other, they seek to regulate the online gaming market in India in order to protect users’ interests.
