New Regulations in the Online Gaming Industry in India in 2023
The Indian government has introduced new regulations around the online gaming industry. The rules will put a stop to the blanket bans imposed by states like Tamil Nadu, Andhra Pradesh and Odisha, while attracting more investment, job creation and making India globally competitive.
The India government will establish three self-regulatory organisations (SROs) that will approve games that comply with the rules for operation in India. They will also publish a framework to safeguard users against gaming addiction, financial loss and fraud.
Real-money games
In a big boost for the online gaming industry, India government has introduced new regulations around real-money games. These are expected to make the country a global force in this sector that is forecast to generate $7 billion in revenue by 2026.
Under the new rules, Self Regulatory Organisations will determine whether an online game is permissible or not. Three SROs will be initially notified, but more may be added later.
These SROs will also include representatives from the gaming industry, educators, and experts in child protection, psychology, and other fields.
The ministry says the rule will help avoid confusion and will create a uniform framework for determining whether online games are permissible or not. It also clarifies that games involving wagering on any outcome are non-permissible and SROs allowing such games will be breaking the law.
Self-regulatory organisations
Self-regulatory organisations (SROs) are an important part of the regulatory landscape. They help to build trust in the financial industry by establishing and enforcing rules that are fair, efficient and backed by governmental authority.
Historically, self-regulation has primarily been defined by Webster’s Dictionary as “control or supervision from within,” and is a popular alternative to direct outside control of a business. While SROs may have some level of regulatory authority in place of government regulation, they are also often used to complement or operate alongside regulation by the Securities Exchange Commission and other governmental agencies.
The British Columbia Securities Commission, along with Canada’s other securities regulators, has the statutory power to recognize SROs. The BCSC recognized the New Self-Regulatory Organization of Canada effective January 1, 2023, which consolidated the functions and powers of IIROC and MFDA under one umbrella organization.
Know-your-customer (KYC) norms
The Indian government has introduced new regulations around the online gaming industry. These will help curb fraud, money laundering and other illegal activities.
KYC, or know your customer, is a set of regulations that helps companies protect themselves from financial crime and ensures that their customers are legitimate. These include identifying and verifying the customer, establishing a risk profile and monitoring their transactions.
These standards are crucial for preventing and combating illegal financial practices like money laundering and terrorism financing. They are also important for protecting the public from being taken advantage of by criminals.
It is important to note that different jurisdictions will have differing requirements for KYC checks. For instance, European casinos do not have to carry out identity verification until their customers deposit over 2000 EUR. India online casinos don't have such requirements, but if you need more detailed information, check it at https://bestindiancasinos.co.in/.
Parental controls
Parental controls can be a useful tool in regulating gaming behaviour. They help monitor gaming time, set time limits for online games, and even block internet access on devices.
These controls also allow parents to control online communication with children, including muting chat, blocking content created by strangers and requiring a parent’s approval before accepting friend requests.
Besides controlling communication, parental controls can also help limit in-game spending, such as buying items that have randomized rewards. They can also prevent players from sharing personal information such as their in-game name or real-life photos.
Government regulation could influence the availability of these controls, and state-funded campaigns to raise awareness might help promote them. However, there is no evidence on whether such measures actually reduce gaming-related risks.