On April 6, 2023, the Indian government published a public notice of new rules for the online gaming industry entitled “Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023.” The Rules require online gaming intermediaries to take steps so that the users do not share any information that infringes intellectual property rights.

The enactment of the new Rules is a momentous step that is likely to provide stability considering the growing online gaming industry was unregulated. The Rules are a step in the right direction because they facilitate a framework for recognizing legitimate players in the online gaming industry, disallow gambling platforms, and safeguard users against the risk of gaming addiction and financial loss.

The Rules mandate an online gaming intermediary (OGI) to observe due diligence to safeguard the interests of users; the Rules also require the OGI to carry out additional due diligence. The OGI is required to inform its rules and regulations, privacy policy, or user agreement to the user and make reasonable efforts to cause its users not to host, display, upload, modify, publish, transmit, store, or share any information that:

1. Is obscene, pornographic, or invasive of another’s privacy;
2. Encourages money laundering;
3. Is harmful to a child;
4. Infringes any patent, trademark, copyright, or other proprietary rights;
5. Is identified as fake or misleading by a fact-checking unit of the Central Government; or
6. Threatens the unity, integrity, security, or sovereignty of India, or friendly relations with foreign states.

The additional due diligence includes the appointment of a chief compliance officer, a nodal contact person, and a resident grievance officer.

The OGI also must display a visible mark of verification on the game approved by a self-regulatory organization (SRO). The SRO will be registered with the Ministry of Electronics and Information Technology and determine if the online game is permissible or not.

If the online game involves wagering, causes psychological harm, is against the sovereignty and integrity of India, the security of the state, friendly relations with foreign states or public order, or if the OGI does not follow due diligence, the SRO shall not permit it.

The SRO can suspend or withdraw the permission it grants to an online game if it is not conducted in accordance with the Rules. The SRO will consist of individuals from a diverse range of sectors, including industry, education, psychology, public policy, law enforcement, and children’s rights. The government will constitute three SROs but can designate more. The government can suspend or revoke the designation of SRO. The list of games approved by SROs shall be available on its website or mobile app.