Check out the changes in the offing for online gaming industry


by 5paisa Research Team Last Updated: Jan 03, 2023 - 10:32 am 41.1k Views

With the user base of online games growing in India, there has been a growing chorus to ensure that such games be offered in conformity with Indian laws and that the users of such games be safeguarded against potential harm.

Last week, the Indian government allocated matters related to online gaming to the Ministry of Electronics and Information Technology. The ministry has now come up with some draft amendments to address the issues, while enabling the growth of the online gaming industry in a responsible manner.

Broadly, the draft amendments envisage that an online gaming intermediary shall observe the due diligence required under the rules while discharging its duties, including reasonable efforts to cause its users not to host, display, upload, publish, transmit or share an online game not in conformity with Indian law, including any law on gambling or betting.

Moreover, it shall observe additional due diligence by displaying a registration mark on all online games registered by a self-regulatory body and informing its users regarding its policy related to withdrawal or refund of deposit, manner of determination and distribution of winnings, fees and other charges payable and know your customer (KYC) procedure for user account registration.

Self-regulatory bodies will be registered with the ministry and may register online games of such online gaming intermediaries who are its members and which meet certain criteria. Such bodies will also resolve complaints through a grievance redressal mechanism.

Most of online gaming bigwigs are currently private firms backed by venture capital and private equity investors, with the exception of Nazara Technologies and few others. Fantasy sports and real money-based games have been growing fast over the last 3-4 years despite there being lack of regulatory clarity on their scope and due diligence.

The new draft amendments seek to bring them under the ambit of more pronounced and established rules with clauses that could put the onus of compliance on the ventures. While this would push up the cost of operations for some of these startups, it also paves the way for attracting more investors who were averse to backing companies prone to regulatory whiplash.

How do you rate this blog?


Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Open Free Demat Account

Resend OTP
Please Enter OTP
Account belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Bearer Cheque

Introduction A bearer cheque is an efficient and adaptable financial tool. It is a method of payment where the cheque is made out to the owner or bearer of the document. Bearer cheques enable the holder to cash or deposit the cheque without any requirement for identification or endorsement, in contrast to other cheques payable to a specific person or business.

  • Jun 06, 2023
Best Indicators for Intraday Trading

Introduction Intraday trading, also known as day trading, is a fast-paced trading strategy where traders aim to take advantage of short-term price fluctuations in financial markets. To succeed in this highly competitive arena, traders rely on various best indicators for intraday to make informed decisions and maximize their chances of profitability.

  • Jun 06, 2023
Nifty Outlook for 7 June 2023

Nifty started the day around 18600, but it witnessed selling pressure as the IT stocks corrected sharply and thus the benchmark index traded under pressure. However, the index recovered the losses from the lows towards the end and closed around the opening levels with a negligible loss.

  • Jun 06, 2023

Start Investing Now!

Open Free Demat Account in 5 mins

Enter Valid Mobile Number