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Government Proposes Amendment To It Rules To Regulate Online Gaming

By - King Stubb & Kasiva on January 11, 2023

Under the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, which also govern social media platforms, the government has proposed the idea of imposing regulations on websites that provide real-money online gambling. The IT Rules presently govern social media intermediates and major social media intermediaries. However, the ambit of the Rule is likely to be expanded to also cover online gaming intermediaries.

Analysts believe that the new rules might be detrimental to multinational betting organizations while providing opportunities for growth to Indian fantasy sports and other gambling businesses.

Severalstate governments have established their own regulations in response to the lack of central controls for internet gambling. These regulations seek to mitigate some of the negative consequences that are caused by the sector. Due to this, businesses that deal in internet gambling are operating in an unpredictable environment. It is believed that the new rules would provide clarity and stability to this sector, which is expanding at a fast pace.

The standards that are being suggested ensure that self-regulatory organizationsshall only allow skill-based games to be played online. In addition, the registration emblem of the self-regulatory body will be displayed on each game to ensure that marketers, law enforcement agencies, influencers, and all other stakeholders are able to differentiate between legitimate skill games and illegitimate gambling games.

Thus, these changes have been initiated keeping in mind the changes that the industry is undergoing as well as the regulatory mechanism it requires. While the exact scope and impact of the amended rules can be seen only once the same are made available in the public domain, it is expected that these changes shall be beneficial for the industry as well as the users at large.



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