Online Gaming Exemption from IT Rules of 2021 Deemed Unenforceable by Government.
Title: India's Online Gaming Crackdown: MeitY's Self-Regulatory Body Inaction Raises Controversy
The Ministry of Electronics and IT's (MeitY) failure to designate a self-regulatory body for online gaming intermediaries under the Information Technology Rules of 2021 has become a bone of contention in the ongoing dispute over Tamil Nadu's Prohibition of Online Gambling and Regulation of Online Games Act of 2022.
The clash between gaming giants like Play Games 24X7, Junglee Games, and Head Digital Works (A23) and the Tamil Nadu administration revolves around the mandatory Aadhaar-based Know Your Customer (KYC) verification, the real money gaming OTP restrictions, and the ban on such activities between midnight and 5 a.m.
Following the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules' amendments in 2023, online gaming companies were intended to be subject to regulation under Rule 4A as online gaming intermediaries. This rule necessitates the creation of self-regulatory bodies, focused on the prevention of harmful content in online games, restricting children's access, addiction mitigation, implementing age- rating mechanisms, and enabling parental controls.
Madras High Court is currently hearing the challenge against the Tamil Nadu law and the regulations. The ministry, nonetheless, asserts that the state has the power to impose time restrictions on online gaming activities within its borders.
Regarding Aadhaar, the ministry clarified that its use must remain voluntary, as per existing Aadhaar laws and regulations. The online gaming service providers could, however, seek permission for voluntary Aadhaar-based authentication under the 2025 amended Aadhaar Authentication of Good Governance (Social Welfare, Innovation, Knowledge) Rules, depending on their use case serving the state's interests.
IT Minister, Ashwini Vaishnaw, emphasized in Parliament that the 2023 amendments aimed to regulate online gaming companies and mitigate their societal impact, particularly on children.
As the standoff continues, the lack of a designated self-regulatory body for online gaming intermediaries in India raises questions about the government's commitment to creating a safe and transparent digital gaming environment.
Further Reading: Madras HC Denies Interim Relief To Gaming Firms, Final Hearing On 13th July
Under the intermediary rules, a provision allows for the creation of a self-regulatory body. These rules ensure that any such body must focus on five key aspects: preventing the transmission of harmful content in online games, restricting children's access to such content, mitigating addiction, implementing an age-rating mechanism, and enabling parental controls.
As the saga unfolds, India's online gaming industry is left in limbo, awaiting the establishment of a functional self-regulatory body to guarantee compliance with the IT Rules 2021 and protect consumers.
- The lack of a designated self-regulatory body for online gaming intermediaries in India, as stipulated under the Intermediary Rules, is causing controversy in the ongoing dispute.
- The self-regulatory body, as per the IT Rules of 2021, should focus on five key aspects: preventing harmful content transmission, restricting children's access, addiction mitigation, age-rating mechanisms implementation, and enabling parental controls.
- The voluntary use of Aadhaar in online gaming, despite the ongoing dispute, remains in accordance with existing Aadhaar laws and regulations.
- The telegram between the ministry and the online gaming service providers may involve discussions about seeking permission for voluntary Aadhaar-based authentication under the 2025 amended Aadhaar Authentication of Good Governance (Social Welfare, Innovation, Knowledge) Rules.
