Industry bodies cannot become self-regulatory organisations to regulate online gaming: Union Minister Rajeev Chandrasekhar

The Government of India proposed self-regulation for online gaming companies earlier this month; however, on Tuesday, January 17, Rajeev Chandrasekhar, Minister of State for Electronics and Information Technology, told the press that "industry bodies cannot become self-regulatory organizations to regulate online gaming."

The remarks from the Union Minister came after an open house consultation with online gaming companies on the proposed rules. In addition to his comments, the minister also said the watchdog should not get influenced by industry bodies. He further suggested that SRO should comprise the "children, parents, players, the government, and gaming intermediaries."

Here's what the Union Minister said:

"It is wrong to assume that an industry body will automatically become a self-regulatory organization. Any industry body will not be SRO. It will be a body representing all the stakeholders."

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Online gaming in India: New rules expected to be notified by January 31

Besides talking about the SRO, Rajeev Chandrasekhar also told reporters that he expects the new rules regarding online games, after an open house consultation with companies on proposed rules, to be notified by January 31, 2023.

Besides the notification of the new rules, MeitY (Ministry of Electronics and Information Technology) also extended the date for the "public comments on the proposed rules" to January 25 from January 17.

For the unversed, MeitY proposed draft amendments to IT (Intermediary Guidelines and Digital Media Ethics Code) Rules 2021 on January 2, 2023, after the Government of India made it the nodal ministry for businesses related to online games.

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The Government of India allocated the authority to MeitY on businesses related to online games

At the end of December 2022, India's Union Government gave its IT ministry the authority over online games and related businesses. The sudden allocation was also accompanied by the recognition of esports as multi-sports events.

After the development, the Department of Sports of the YAS Ministry (Ministry of Youth Affairs and Sports) became the nodal agency for esports. The decision was lauded by many, with even Krafton India's CEO calling the move "pathbreaking" for the industry.

However, many were not satisfied with the Indian government's use of the term online gaming to club casual video games like Candy Crush, Ludo King, etc, with those of real money gaming platforms, including fantasy sports apps, Teenpatti, and more.

Reportedly, more than 40 firms wrote a letter to MeitY to separate casual video games from the ones played for stakes. Many sources also reported that multiple concerns, including online games' definition, KYC norms' implementation, and child safety, were raised via the letter.