Betting, Gambling Ban for Online Games: New Draft Rules

Online gambling on games will no longer be permitted and going forward, online gaming enterprises must register with a self-regulatory authority in order to avoid accepting bets on online games.

In a notice, the Union Ministry of Electronics and Information Technology (MeitY) stated that gambling and betting are strictly forbidden. The self-regulatory mechanism and player verification provisions of the ministry's draft rules for online gaming companies are included.

IT Act

Additionally, online gaming businesses will be covered by the 2021 IT regulations issued for social media platforms.

"Online gaming intermediaries will be permitted, but they will not be permitted if they tend to transgress into betting." We want to make it illegal for intermediaries to advertise without permission. "Regulating the Internet is our responsibility," Union minister Rajeev Chandrashekhar stated to ANI.

The minister stated that the online gaming regulations should be finalized by the beginning of February. According to the notice, the rules are meant to promote the responsible growth of the online gaming industry.

"Self-governing bodies will be enrolled in the service and will be able to enlist web-based rounds of internet gaming mediators who are its individuals and meet specific rules." A grievance redressal mechanism will also be used by these bodies to settle complaints, according to the notice.

According to Chandrashekhar, the Center's responsibility is to ensure that the internet is safe and reliable and that online gaming intermediaries prohibit wagering on games' outcomes.

As opposed to the current service charge fee of 18% on the online gaming industry's Gross Gaming Revenue (GGR), the Center will reportedly impose a Goods and Services Tax (GST) of 28% on the total amount in order to facilitate players' participation in the game.

The central government has recently recognized e-sports alongside traditional sports in the country.