Govt. separates online games from real money games, esports industry happy

The government has released new rules for online gaming, which prohibit any game that involves betting and wagering, and entail a framework of multiple self-regulatory organizations (SROs) to determine whether a real-money game is permitted or not. The newly formed rules say:

“online game? means a game that is offered on the Internet and is accessible by a user through a computer resource or an intermediary. 

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In this clause, Internet indicates the combination of computer facilities and electromagnetic transmission media, and related equipment and software, comprising the interconnected worldwide network of computer networks that transmits information based on a protocol for controlling such transmission.

“online real money game? means an online game where a user makes a deposit in cash or kind with the expectation of earning winnings on that deposit. 

In this clause, ‘winnings’ means any prize, in cash or kind, which is distributed or intended to be distributed to a user of an online game based on the performance of the user and in accordance with the rules of such online game.

The Esports industry feels it’s a great move to separate online games and real money games. Lokesh Suji, Director, Esports Federation of India & Vice President of the Asian Esports Federation (AESF), says, “We express our utmost gratitude to Hon’ble Shri Rajeev Ji & MeitY Team for the clear distinction between online gaming and real money gaming/iGaming under the new amendments made under the Information and Technology Act.

This monumental decision will at last liberate Esports from the conflation with iGaming/RMG

Lokesh Suji, Director, Esports Federation of India & Vice President of the Asian Esports Federation (AESF)

This monumental decision will at last liberate Esports from the conflation with iGaming/RMG. For years, ESFI has been diligently advocating for the separation of online gaming and real money gaming/iGaming, and we are elated to finally see the government take this bold step that showcases their unwavering commitment to fostering a safe and responsible video gaming environment in the country.

The two industries can now have their own policies, guidelines, and laws that regulate them, and the reported numbers can also stay distinct

Rohit Agarwal, Founder & Director, Alpha Zegus

These amendments will act as a catalyst in propelling India towards becoming a powerhouse in the world of video gaming and accelerating its overall development. It’s a great start, but still many miles to go”.

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Rohit Agarwal, Founder & Director, Alpha Zegus, says, “Finally – video games & real money gaming have been given two separate identities. It was a debate that has gone on for quite a while now, and it’s a relief that it’s finally seen the light of day. The two industries can now have their own policies, guidelines, and laws that regulate them, and the reported numbers can also stay distinct. Great move by the government.”