Online Gaming Regime in India: Analysing the Proposed Amendments to the IT Rules,2021 in relation to Online Gaming

India has recently experienced a surge in online gaming participation across various categories, prompting the government to propose amendments to the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, specifically targeting online gaming. These changes classify online gaming platforms as intermediaries (Online Gaming Intermediaries), imposing additional obligations and due diligence measures. The proposed definition of online games includes internet-based games where users deposit money or in-kind rewards with the expectation of winning, but there’s a need for clarity on the “in-kind” aspect. The amendments currently do not distinguish between games of skill and chance, potentially subjecting the entire online gaming industry to regulation, although future clarity is expected. Additionally, the amendments introduce KYC mandates, transparency, de-addiction measures, and other obligations, necessitating some adjustments. A self-regulatory body (SRB) is also proposed, but more comprehensive rules should guide SRB operations and principles for uniform regulation across different SRBs. The brief analyses the draft provisions and suggests recommendations.