India devises rules to oversee online betting for the first time
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India has published proposed rules governing apps or websites that involve an exchange of users’ money.
PHOTO: REUTERS
NEW DELHI – India has drafted regulations for the first time to oversee parts of online gaming that fall into a grey area between gambling and entertainment, seeking to resolve growing complaints of addiction, particularly among minors.
The Ministry of Electronics and Information Technology has published proposed rules governing apps or websites that involve an exchange of users’ money, from online casinos and card games to fantasy sports clubs. That sets them apart from popular, competitive gaming titles such as Electronic Arts’ Fifa Soccer, which will be regulated by the Youth Affairs and Sports Ministry.
Online games have proliferated alongside the explosive growth of India’s mobile population, creating a coterie of home-grown unicorns such as Dream 11 and Mobile Premier League.
Consumers have complained about the rise of gaming titles that take money – sometimes from minors – in exchange for financial gain, saying they are stoking gambling addiction.
Online gaming companies will form a regulatory entity registered with the IT ministry, which released draft rules late on Monday.
Under the rules, the self-regulatory body’s board would include a federal government nominee with experience in public policy, law enforcement, public administration or public finance.
The firms will appoint a chief compliance officer who will be responsible for coordinating with law enforcement and make sure the companies implement measures to check players’ identities and ages, the ministry proposed.
The rules are open for public input. BLOOMBERG
