{"id":8302,"date":"2023-04-17T13:14:33","date_gmt":"2023-04-17T13:14:33","guid":{"rendered":"https:\/\/signdesk.com\/in\/?p=8302"},"modified":"2025-09-17T07:17:39","modified_gmt":"2025-09-17T12:47:39","slug":"meity-regulation-about-online-gaming","status":"publish","type":"post","link":"https:\/\/melento.ai\/en-in\/blog\/meity-regulation-about-online-gaming","title":{"rendered":"New MeiTY Gaming Rules [2023]- What\u2019s Next For Online Gaming in India?"},"content":{"rendered":"<h2><span style=\"color: #2c5363;\"><b>Introduction<\/b><\/span><\/h2>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The Ministry of Electronics and Information Technology (MeitY) has announced a new set of regulations in a draft notification to safeguard online gamers from dangerous content, financial damage, and addiction. The rules were announced as a step to control the internet gambling market and further regulate games involving real money deposits and winnings.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">A self-regulation model must be implemented to authorize online games that can function in the nation in conformity with the laws. This means that self-regulatory organizations (SROs) will be formed to approve online games offered by companies and gaming intermediaries, as long as they don\u2019t involve wagering on outcomes.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">In addition, SROs must also provide a structure for protecting consumers against gambling addiction, monetary loss, and fraud.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The rules will apply to all online gaming companies &amp; online gaming intermediaries that host, publish or advertise games online in India. In other words, any company that offers games to users over a computer resource is subject to the new regulations notified by MeitY.<\/p>\n<h2><span style=\"color: #2c5363;\"><b>New Rules For Online Gaming &#8211; Summarized<\/b><\/span><\/h2>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The <a href=\"https:\/\/www.meity.gov.in\/writereaddata\/files\/Draft%20notification%20for%20amendment%20to%20IT%20Rules%202021%20for%20Online%20Gaming.pdf\">draft notification released by MeiTY<\/a> consists of the regulations to be followed by online gaming companies and intermediaries. Here\u2019s a summary of these rules &#8211;<\/p>\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Online games involving real money to be brought under the IT Rules, 2021<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Online gaming companies &amp; intermediaries to perform due diligence procedures before providing gaming services<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Gamer identities to be verified via RBI-approved procedures<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">SROs to be created to approve online games before their release<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Procedures to be created for processing complaints, non-compliance &amp; for protection from addiction &amp; harm<\/li>\n<\/ul>\n<h3><span style=\"color: #2c5363;\"><b>Breaking Down the Draft Guidelines For Online Gaming Intermediaries<\/b><\/span><\/h3>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">As per the regulations stated in the notification, online games that are legal for individuals to engage in are those that do not contain gambling, user harm, or have any addictive effects on kids, whether they are played for real money or not.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Here are the key takeaways from the new guidelines issued for online gaming intermediaries.<\/p>\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><strong>Part 1<\/strong>:<b> Due Diligence Rules<\/b><\/li>\n<\/ul>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The new rules laid out by MeitY, online gaming intermediaries are required to observe additional due diligence practices while offering online games in India. The intermediary has to ensure to adhere to the following guidelines:<\/p>\n<ol>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"color: #333333;\">Display a visible registration mark on each of the online games registered by the self-regulatory body.<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"color: #333333;\">A user needs to be aware of the terms of service, privacy policies, rules and regulations, and user agreements of the online gaming intermediary.<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"color: #333333;\">The online gaming intermediary shall inform the user of &#8211;<\/span>\n<ul>\n<li><span style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">All the online games they provide<\/span><\/li>\n<li><span style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Terms governing the withdrawal or refund of deposits made in anticipation of winnings\u00a0<\/span><\/li>\n<li><span style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The method used to calculate and hand out winnings<\/span><\/li>\n<li><span style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Fees and other costs that the user must pay for each such game played online<\/span><\/li>\n<li><span style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The likelihood of financial loss and addiction caused by the online game<\/span><\/li>\n<li><span style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The <span style=\"color: #333333;\"><a style=\"color: #333333;\" href=\"https:\/\/signdesk.com\/digital-kyc\">KYC or know-your-customer<\/a> process used by the intermediary to register a user&#8217;s account<\/span><\/span><\/li>\n<li><span style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The precautions that are taken to protect a user&#8217;s deposit<\/span><\/li>\n<li><span style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The framework of the self-regulatory body, of which the intermediary may be a member<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<ol>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"color: #333333;\">The intermediary has to prominently showcase on its website, mobile app, or both a random number generation certificate and a no-bot certificate from a reputable certifying body, together with the necessary information, for each online game it offers.<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"color: #333333;\">Identify the user and confirm his identification before beginning a user account-based relationship for an online game.<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"color: #333333;\">Users who register\/use the online gaming intermediary&#8217;s services from India will be given the option to verify their accounts voluntarily. When they do, they will receive a verification mark that will be visible to all other users of the service.<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"color: #333333;\">In addition to these rules, online gaming intermediaries are also instructed to appoint a Grievance Officer, an employee of the intermediary, a Chief Compliance Officer, a senior employee or key managerial personnel of the intermediary, and a nodal contact person, all of whom are Indian residents.<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"color: #333333;\">The Chief Compliance Officer will be responsible for assuring adherence to the Act and its requirements and will be held accountable in any legal proceedings relating to any pertinent third-party information, data, or communication link made available or hosted by the intermediary.<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"color: #333333;\">The Officer will also collaborate with law enforcement authorities and their officers at all times to ensure adherence to their directives or requests.<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"color: #333333;\">To ensure that their instructions or requisitions are carried out in accordance with the provisions of the law or rules issued thereunder, the nodal contact person will be responsible for coordinating with law enforcement agencies and officers 24&#215;7.<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"color: #333333;\">In addition to the above requirements, the intermediary must have a physical contact address in India that is made public on its website or mobile application, or both to receive any correspondence directed to it.<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"color: #333333;\">The intermediary must also set up a suitable system for complaints to be submitted, and it must give each complaint or grievance it receives a specific ticket number so that the complainant may trace its progress.<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"color: #333333;\">As long as it&#8217;s reasonable, the intermediary must explain to the complainant why it took or did not take a particular action in response to a complaint or grievance it received.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><strong>Part 2<\/strong>:<b> Self-Regulation Rules<\/b><\/li>\n<\/ul>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">As per MeitY\u2019s new regulations, online gaming intermediaries have to set up a Self-Regulatory Body or Self-Regulatory Organization (SRO) to approve games being offered to users over the internet. The self-regulatory organization must be one that the Ministry has registered.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The SRO must be created to develop a framework to ensure compliance with the objectives of the IT Rules, 2021.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Any online gaming intermediary that seeks to be registered as a self-regulatory body must take into account the following requirements:<\/p>\n<ul>\n<li><span style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The number of online gaming intermediaries that are its members\u00a0<\/span><\/li>\n<li><span style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Its proven record of supporting responsible online gaming<\/span><\/li>\n<li><span style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The relevance and suitability of the persons who comprise its Board of Directors or governing body.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The following individuals can serve on the board of directors or governing body of such SROs:<\/p>\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">A distinguished independent individual from the online gaming, sports, or entertainment industries or another pertinent industry<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">A person who represents online gamers<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">An individual from the psychology, medicine, or consumer education industries<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">A person with practical experience in public policy, public administration, law enforcement, or public finance (to be nominated by the central government)<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">A specialist in information and communications technology:<\/li>\n<\/ul>\n<div align=\"center\"><span style=\"color: #333333;\"><a style=\"color: #333333;\" href=\"https:\/\/melento.ai\/en-in\/talk-to-sales\"><button class=\"wpcf7-form-control wpcf7-submit envor-btn envor-btn-primary envor-btn-normal\" style=\"border-radius: 30px !important; background-color: #00b087; border: #00b087;\" type=\"button\"><strong>Get In Touch<\/strong><\/button><\/a><\/span><\/div>\n<h2><b style=\"color: #2c5363;\">The Core Functions &amp; Responsibilities of SROs<\/b><\/h2>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The self-regulatory body must operate impartially and unbiasedly with its member online gaming intermediaries. It is given the ability to use technology, knowledge, and other appropriate resources to develop the needed framework, test and validate that online games adhere to it, and continuously update and further develop such framework, testing, and verification protocols.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The SRO may grant membership to an online gaming intermediary, taking into consideration the following factors:<\/p>\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The compliance displayed by an online gaming intermediary and all online games offered by it.<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The compliance of such online gaming intermediaries with due diligence and additional due diligence.<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The intermediary&#8217;s demonstrated history of offering online games responsibly and protecting the interests mentioned in section 69A of the IT Act.<\/li>\n<\/ul>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The SRO can register an online game if it meets the following requirements:<\/p>\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The game is offered by an online gaming intermediary that is a member of the self-regulatory body and has been granted membership in accordance with the prescribed rules.<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">It does not contain anything that is detrimental to India&#8217;s sovereignty and integrity, defense, security, cordial relations with other countries, or public order or encourages the commission of any offenses.<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">It complies with all regulations now in effect in India, including those that address betting, gaming, and the legal age for signing contracts.<\/li>\n<\/ul>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">If the online game meets all these requirements, the body can enable the intermediary to display a demonstrable registration mark indicating that the said online game is registered with the self-regulatory authority.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The framework developed by the self-regulatory body may also include appropriate standards for:<\/p>\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Actions to protect users from harm, including self-harm based on the content of the online game, both registered or to be registered.<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Measures to protect users from the risk of financial loss and gaming addiction, involve repeated warning messages at a higher frequency beyond a reasonable duration for a gaming session and the ability for a user to exclude themselves upon user-defined time and money spending limits.<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Strategies to safeguard against the risk of financial fraud.<\/li>\n<\/ul>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Every SRO registered following this rule is also required to inform the Central Government that it has recognized each online game registered with it as such and provide a report on the grounds upon which that recognition was made.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">And it has to establish a mechanism for the timely resolution of user complaints that still need to be resolved by the grievance redressal mechanism of its member online gaming intermediary.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">In a nutshell, a self-regulatory body will be able to:<\/p>\n<ol type=\"\">\n<li style=\"list-style-type: none;\">\n<ol type=\"\">\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Grant membership to a gaming intermediary<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Register an online game<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Evolve a framework<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Interface with the Central Government<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Resolve user complaints<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Report non-compliance<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">And take appropriate action to protect online gaming users<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<h3><span style=\"color: #2c5363;\"><b>How Does Digital KYC Help Gaming Intermediaries Conduct Due Diligence?<\/b><\/span><\/h3>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Online gaming intermediaries can use digital KYC solutions to verify users online and enhance their due diligence practices. According to the new rules, intermediaries must authenticate users and verify their identity when starting a user account-based relationship. They are directed to follow the same user identification and verification process <a href=\"https:\/\/melento.ai\/en-in\/blog\/everything-you-need-to-know-about-rbi-amended-vcip\"> prescribed by the Reserve Bank of India<\/a> for any entity subject to it.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Digital KYC helps online gaming providers comply with Anti-Money Laundering or <a href=\"https:\/\/melento.ai\/en-in\/blog\/role-of-kyc-verification-in-anti-money-muling\">AML<\/a> regulations through procedures like ID verification, transaction monitoring, screening against watchlists and sanctions, and performing enhanced due diligence when necessary.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Performing <a href=\"https:\/\/melento.ai\/en-in\/blog\/kyc-verification-for-online-betting-gambling-gaming\">robust KYC<\/a> on potential game users enables intermediaries to prevent the risk of fraud to a large extent. Leveraging digital KYC allows online gaming intermediaries to reduce any possibility of facilitating money laundering and terrorist financing activities.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Moreover, performing all the necessary know-your-customer checks helps online gaming companies preserve the interests of user safety by leveling up their user verification practices.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">By streamlining procedures like user age verification, player self-exclusion, user data protection, and regulatory compliance, digital KYC contributes to creating a secure online gaming environment that safeguards players&#8217; interests and increases their trust in the industry.<\/p>\n<h2><span style=\"color: #2c5363;\"><b>How Can Online Gaming Companies Conduct KYC?<\/b><\/span><\/h2>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Using platforms like Melento (Formerly SignDesk) that offer RBI-compliant Video-Based Customer Identification Procedure, online gaming intermediaries can securely verify the identity of gamers online and ensure total compliance with the announced government regulations.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-8311\" src=\"https:\/\/melento.ai\/en-in\/blog\/wp-content\/uploads\/2023\/04\/esign-Real-Estate-Documents-02-1.jpg\" alt=\"Process of Digital KYC for Online Gaming\" width=\"3208\" height=\"1500\" \/><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><a href=\"https:\/\/melento.ai\/en-in\/vcip\"><strong>Video-Based Customer Identification Procedure or VCIP<\/strong><\/a>\u00a0allows online gaming intermediaries to verify gamers digitally before commencing an account-based relationship with them. The process takes place as follows:<\/p>\n<ol type=\"a\">\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The user uploads an image or scanned copy of their ID document<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The relevant data from the uploaded document will be extracted<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The data will be verified online against trusted databases using ID verification APIs<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">ML techniques match the photo on the ID to the user undergoing KYC<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Illegitimate users are filtered out and removed<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The user\u2019s location is identified, and liveness checks are performed<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">User verification is complete, and only approved users will be able to access the game<\/li>\n<\/ol>\n<h3><span style=\"color: #2c5363;\"><b>Verify Gamers Online With Digital KYC\u00a0<\/b><\/span><\/h3>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The IT Rules have been amended to accommodate new online gaming regulations and create a safe and responsible digital gaming space for users. Online gaming intermediaries can use Melento (Formerly SignDesk)\u2019s secure, RBI-compliant VCIP or video-based customer identification process to quickly verify users and eliminate the creation and usage of illegitimate online gaming accounts.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Get in touch with us to learn how digital KYC works and secure online gaming from end to end.<\/p>\n<div align=\"center\"><span style=\"color: #333333;\"><a style=\"color: #333333;\" href=\"https:\/\/melento.ai\/en-in\/talk-to-sales\"><button class=\"wpcf7-form-control wpcf7-submit envor-btn envor-btn-primary envor-btn-normal\" style=\"border-radius: 30px !important; background-color: #00b087; border: #00b087;\" type=\"button\"><strong>Get Started with Verification<\/strong><\/button><\/a><\/span><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Introduction The Ministry of Electronics and Information Technology (MeitY) has announced a new set of regulations in a draft notification to safeguard online gamers from dangerous content, financial damage, and addiction. The rules were announced as a step to control the internet gambling market and further regulate games involving real money deposits and winnings. &nbsp; [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":9824,"comment_status":"open","ping_status":"closed","sticky":false,"template":"page_templates\/blog-new-3.php","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[20,21],"tags":[728,1222,1263,1463,1579,1648,1652,1653,1751,1752,1753,2351,2352],"class_list":["post-8302","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-regulations","category-v-cip","tag-due-diligence-for-online-gaming","tag-guidelines-for-online-gaming-intermediaries","tag-how-can-online-gaming-companies-conduct-kyc","tag-kyc-for-online-gaming","tag-meity-gaming-rules-2023","tag-new-amendment-for-online-gaming","tag-new-meity-gaming-rules-2023","tag-new-rules-for-online-gaming","tag-online-gaming-kyc","tag-online-gaming-new-rules","tag-online-gaming-regulation","tag-verify-gamers-online","tag-verify-gamers-online-with-digital-kyc"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>MeitY Issues New Draft Rules For Online Gaming | Melento (Formerly SignDesk)<\/title>\n<meta name=\"description\" content=\"MeitY has released draft rules for online gaming in India. 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