For the last several years, the popularity of online gaming in India has been seen increasing among people. As with the growth of the internet and mobile, gaming has become an industry. In this blog, we will discuss the legality of the online betting market. Whose brief description is given?
Legality: Online gaming has become legal in India, but with some restrictions. The Government of India has banned online betting and gambling. Under Entry 34 of List II of the Constitution of India, each Indian State has the power to regulate betting and gambling within such State.
It has given different definitions of betting or gambling to different Indian states. The government views online betting and gambling activities as a potential source of money laundering and corruption and therefore bans them. Due to this online gaming was banned.
Governing Law and Regulatory Bodies:
At present, there is no dedicated regulatory body for online gaming in India after the rise in popularity of online gaming. The Ministry of Electronics and Information Technology (MeitY) is responsible for overseeing this sector, and the Information Technology Act of 2000 regulates and oversees online activities in India.
On 2 January 2023, MeitY released draft rules for the regulation of online gaming in India. The proposed provisions have been introduced as amendments to the Information Technology (Intermediary Guidelines and Digital Media Code of Conduct) Rules, 2021.
Proposed amendments for online gaming:
The draft rules define online games. The draft amendment classifies providers of online games as “intermediaries” under the Information Technology Act of 2000. It covers sports in which winnings are payable both in cash and in kind.
All online games are required to be registered with a self-regulatory body. The draft amendment imposes additional compliance requirements on online gaming intermediaries.
Consumer Safety in Online Gaming:
One of the biggest tasks with online gaming is consumer protection. There have been instances of a large number of players being cheated, and a proper dispute resolution mechanism is lacking. The government has taken certain steps to address this, but more needs to be done to ensure the safety of the players.
Online Gaming Conclusion:
Online gaming by the Indian government Finally, regulation of online gaming in India is still in its infancy, and there could be a lot of room for improvement. The inclusion of online gaming intermediaries in the IT (Intermediaries Guidelines and Digital Media Code of Conduct) Rules, 2021 will be a significant point and gives a clear idea of the government’s approach towards online gaming intermediaries.
There is also an urgent need for the government to provide clear guidance on taxes and consumer protection. With proper regulations, online gaming in India has the potential to become a thriving industry, providing employment and entertainment to millions.
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