New Regulatory Framework Set to Introduce Spending Limits For Online Gaming

Online gaming has the government worried over players’ mental and physical well-being and the financial vices that come with it. To ensure consumer and gamer protection, the Ministry of Electronics and Information Technology (MEITY) had set up an inter-ministerial group, back in May this year to deliberate on matters to promote online gaming and frame regulatory mechanisms for the segment, protection of gamers, ease of doing business, etc.

The Panel is now planning to create regulations that set a bar on the amount of money individuals can spend on online gaming for in-gaming purchases. The task force comprises seven members from various ministries, including NITI Aayog, the Ministry of Home Affairs, the Department of Revenue, the Department for Promotion of Industry and Internal Trade, and the Ministry of Information and Broadcasting, as well as the MEITY. They have suggested amendments to the Information Technology Act of 2000 to regulate the gaming sector. 

The sector has been directed to develop a self-regulatory organisation (SRO) to adjudicate issues relating to online gaming. Further, addressing issues like the safety of women gamers, building concrete definitions of games of skill and games of chance, and establishing an overall “predictable and stable regulatory framework to govern the gaming industry” shall be the task force’s primary objective.