Exclusive: Cabinet secretariat appoints nodal ministries for online gaming, esports paving way for potential central regulation

After months of deliberations and consultations by an inter-ministerial task force formed by the central government to consider regulating online games, the Cabinet Secretariat has finally announced the nodal ministries to regulate online games and esports. decided.

according to official gazette notification Issued on the 26thth In December 2022, Amendments to the Government of India (Business Allocation) (370th Amendment) Regulations, 2022 were published to add: “Matters Concerning Online Games” Under the jurisdiction of the Electronics and Information Technology Department, “Esports as part of a multisport event” It is under the jurisdiction of the Ministry of Youth and Sports.

The central government reportedly has been working on issuing rules Govern the online gaming sector. Originally, specific rules were to be issued to govern skill-based games, but After Objection from Prime Minister’s Office The proposed rules apply to all online gaming websites regardless of whether they offer skill-based or chance-based games. These rules will likely include Know Your Customer (KYC) standards followed by online gaming portals, prohibiting minors from accessing real money games and placing limits on how much money they can play. addiction, addiction recovery, and grievance mechanisms.

Due to recent modifications to business rule assignments, Electronics and Information Technology Department will soon publish regulations governing the online gaming sector. It remains to be seen whether the rule will override state legislative powers to define and ban online games, including skill games, or simply provide broad guidelines for game companies.

Apart from issuing regulations to govern the Sunrise sector, the central government is also considering, with the recent amendments to the allocation of business regulations, to include: Regulation of online games and gambling This falls within the broader Digital India Act, which governs all digital sectors and is being considered to replace the 20-year-old Information Technology Act. However, it is understood that the process of enacting this new law is still in its early stages and it may take months or years for the law to become a reality.

It remains to be seen whether the proposed regulations issued by the central government will clarify the regulation of the online gaming industry and end the uncertainty about the legality of online real money games.

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