Online Gaming
Why in news :
- The Ministry of Electronics and Information Technology (MeitY) has released draft amendments in relation to online gaming.
- The main intention is to ensure that online games are in conformity with Indian laws and to safeguard users against potential harm.
Main provisions of the draft :
- The draft proposal defines what constitutes an ‘online game’.
- It is “a game that is offered on the internet and is accessible by a user through a computer resource if he makes a deposit with the expectation of earning winnings”.
- ‘Winning’ constitutes any prize, in cash or kind, intended to be given to the participant “on the performance of the user and in accordance with the rules of such online game”.
- This mainly addresses the discourse in the sector about the definitions of a ‘game of skill’ and ‘game of chance’.
- The draft proposes a self-regulatory mechanism which, in future, may also regulate the content of online gaming.
- The proposal endeavours to provide for greater transparency.
- The game operators would have to verify users on the platform and provide them with the terms of services.
- For the monetary aspects involved, operators would have to inform the user about the policy related to withdrawal or refund of their deposit, measures taken for its protection, the manner and distribution of winnings and the fees and other charges to be paid by the user.
- They would also have to be informed about the risk of potential financial loss and addiction associated with the game.
- Addiction is to be combated using repeated warning messages after the user exceed a reasonable duration while playing a certain game.
Responsibilities for the platforms and their owners under the draft :
- Before hosting or publishing a game, the platform would have to verify it from the self-regulatory body it is associated with.
- It would then be required to carry a registration mark on all its recognised online games.
- The platform is expected to appoint a key management personnel or senior employee as its Chief Compliance Officer.
- He would be entrusted with coordinating with law enforcement agencies to ensure compliance with their orders or requisitions.
- Further, it must have in place an appropriate mechanism for receipt and resolution of grievances.
- The complainant must be able to track the status of the same using a unique ticket number.
- MeitY is responsible for recognising all self-regulated bodies under the proposed framework.
Benefits that flow from the Draft :
- The proposals are aimed at safeguarding the interests of users by introducing set procedures and norms for verification and user engagement.
- It will help curb the menace of antinational and illegal offshore gambling platforms.
- A uniform framework like this will increase investor confidence.
Issues involved :
- The rules put all gaming intermediaries into a broad category irrespective of size or risk.
- They all require similar compliances, including the need to have India based officers. This can make it difficult for global players to start their services in India.
Way forward :
While it is important to regulate the online gaming industry, the regulations should pay attention to the interests of all the stake holders involved.
Syllabus : Prelims + Mains; GS1 – Issues relating to Indian Society
