New amendments for online gaming rules were recently released by Ministry of Electronics and Information Technology. With this release Minister of State (MoS) Rajeev Chandrasekhar clarified that any online game, be it game of skill or chance, will be barred if it contains wagering.

Real money games that have prize money are permitted, while real money games with wagering are not. He said, “Wager is a well-defined expression in Contract Law (Indian Contract Act, 1872), and decisions have clearly held what wager means”.

“There is no need in this framework to get into “nuances” of chance or skill, because the harm of wagering is directly being prohibited – regardless of the nature of the game,” he further added.

The new rules are made keeping in mind that the internet remains open, trusted and safe. While the government have made sure that the new rules keep the people online safe, another factor related to online gaming is still under work.

MeitY is currently working with online gaming companies and have had discussion with them and how can they contribute. Currently, MeitY is going the self-regulatory organization (SRO) route, with three being established to regulate online gaming as of now.

These SROs will develop a proper framework to regulate online gaming and making sure the games do not include any for of wagering. Along with this, Chandrasekhar said, “SROs will evolve a framework on how to deal with addictive n harmful gaming as they develop capacity.”

Many startups have raised queries if the new rules will have any effect on them, as they contain several confusing aspects. Chandrasekhar has clarified that these new rules have been developed after extensive consultation and will simply establish clarity and growth.

While these rules are made to be followed countrywide, it reminds to be seen on how the states who have banned all form of online real money gaming work it out. Tamil Nadu government has clarified that they plan to follow their own legislation.