Explained: Online Real Money Games And What Are The Recent Guidelines To Regulate Them?

To regulate online real money games, the Indian Ministry of Electronics and Information Technology (MeitY) has amended the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021.

In recent years, online real money games have become increasingly popular in India, with many people participating in them on a regular basis. However, this has also raised concerns about their regulation and potential negative effects on users. Some people have become addicted to these games and have suffered financial losses as a result.

Issued to all media formats

MeitY has raised an objection to a specific betting platform's promotion that encouraged the audience to watch a sports league on its website, stating that it is a prima facie violation of the Copyright Act.

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It said, ¡°The advisory has been issued to all media formats, including newspapers, television channels, and online news publishers, and showed specific examples where such advertisements have appeared in the media in recent times.¡±

What are Online real money games?

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Online real money games refer to games that involve the exchange of real money with the possibility of winning more money. These games can take various forms such as casino-style games like poker, blackjack, and slot machines, as well as sports betting, fantasy sports, and other types of online gaming.

What are the new rules?

One of the key rules is the prohibition of the promotion of betting platforms by media entities, media platforms, and online advertisement intermediaries as betting and gambling are illegal activities in India, and any direct or indirect promotion of such activities on media platforms is against regulations.

The new rules have also identified a specific betting platform that violated the Copyright Act 1957 by promoting the audience to watch a sports league on its website. This is a prima facie violation of the act, and the platform may face the consequences of its actions.

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The real money gaming platforms will have to register with a Self-Regulatory Body (SRB) to determine whether the game is "permissible" or not. The SRB will ensure that the games are operated fairly, transparently and in compliance with the law.

Three SRBs will be recognized soon to enforce these new rules. If a game is not deemed "permissible," it will not be protected under the amendment, and states may take action against them as betting or gambling platforms.

However, games that are deemed permissible will be allowed to operate legally, even if they involve deposits against an expectation of winnings. Video games that do not involve money need not approach SRB.

The Self-Regulatory Body is expected to help maintain a fair and regulated market for online real money games in India. It will also provide guidelines for the protection of users from addiction and financial losses.