Modi government mulling law to regulate online gaming, gambling: Report
What's the story
The Ministry of Home Affairs (MHA) is planning to frame a new law to regulate online gaming, gambling, betting, and lotteries, as per CNBC-TV18.
The move was recently discussed in a meeting attended by top officials of various agencies including the Intelligence Bureau.
The Indian Cyber Crime Coordination Centre (I4C) has been tasked with preparing a report on the same for further deliberation.
Regulatory shift
Current regulations and potential changes
Currently, matters pertaining to online gaming fall under the jurisdiction of the Ministry of Electronics and Information Technology (MeitY).
The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, framed under the Information Technology Act, 2000, impose obligations on intermediaries such as online gaming platforms.
However, this could change with MHA introducing a new law.
Illegal practices
Concerns over illegal activities
There are also growing concerns about illegal activities related to online gaming. Several big companies are already under the scanner of central agencies for allegedly duping Indians by manipulation.
Celebrities endorsing illegal gambling activities could also face legal consequences.
Due to these issues, the government is considering stricter rules, especially since online betting and lotteries are mostly luck-based and require no skill.
User risks
Online gaming apps pose potential risks
The central government has flagged a number of potential risks of online gaming/gambling apps.
These include financial loss, data privacy concerns (unauthorized access/storage of data), addiction, suicide, lack of parental control or no age restrictions, and money laundering through offshore gambling applications.
They also suspect these apps may be duping gamers by manipulating outcomes and transferring money in small sums through payment gateways.
State action
Tamil Nadu's approach to online gaming regulation
In related news, Tamil Nadu is also bringing usage restrictions on real-money gaming platforms as part of the state's larger efforts to regulate the booming sector.
The Tamil Nadu Online Gaming Authority has issued rules requiring real-money gaming platforms to impose 'blank hours' between midnight and 5:00am, disabling login during these restricted five hours.
The guidelines also prohibit minors from playing any real-money game and mandate companies to offer players the ability to set daily, weekly and monthly monetary limits.