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Submission on Draft Amendments to the Information Technology Rules related to Online Gaming
Submission on Draft Amendments to the Information Technology Rules related to Online Gaming

January 31, 2023

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On January 25, 2023, we made a submission to the Ministry of Electronics and Information Technology (MEITY) in response to the call for inputs on the Proposed Amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (IT Rules 2021) in relation to online gaming. The proposed amendments are available here.

Key points of feedback:

  1. There is a need for calibrating the proposed amendments to a particular intermediary’s role in the online gaming ecosystem. For example, online gaming aggregators, online game publishers, application stores and cloud & storage space providers, will each have a different level of engagement and intermediation, and therefore obligations must be imposed on these entities according to their role and function.

  2. The term 'online game' must be defined appropriately, to include only games intended to be captured by the proposed amendments, i.e., real-money online games. 

  3. The proposed Self-regulatory Bodies, being the providers of registrations to online games, should be required to publish a list of registered games and to enable any person to check the registration status.

  4. Only those online games must be required to publish a random number generation certificate, that use such generators and for which the certificate is needed.

  5. A risk-based approach must be followed for imposing compliances on online gaming intermediaries, to minimise unintended consequences. For example, a simple KYC process must be mandated at the time of account-creation, followed by a detailed KYC requirement, as required by the RBI, at the time of making a deposit or withdrawal of winnings.

  6. A graded approach must be followed for requiring the appointment of Chief Compliance Officer and Nodal Officer. 

  7. Disproportionate requirements on Online Gaming Intermediaries must not be imposed without justification, such as, responding to requests for information from law enforcement agencies within 24 hours.

  8. Given the adjudicatory function to be performed by an SRB, at least one member with a judicial background must be appointed on the Board of Directors of an SRB.

Detailed submission is attached for your reference. For more information, kindly write to garima@nasscom.in or varun@nasscom.in


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20230125-onlinegaming-draftamendments-blogsubm.pdf

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Garima Prakash
Manager, Public Policy and Government Affairs

Reach out to me for all things policy about e-commerce, international trade, export controls, start-ups and fintech

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