Guidelines for Regulating Online Gaming in India

Guidelines for Regulating Online Gaming in India


Online gaming is a major growth sector in India, but there is also a problem with regulation that is not in line with government vigilance. However, 2021 is poised to shake up the industry with the launch of new online game advertising guidelines, as well as the proposed NITI Aayog regulation of online fiction games in India. The online gaming industry in India has seen rapid growth over the past few years. The industry has also seen some significant growth during the global epidemic, as more people are forced to move online. However, the regulation of these games in India continues to be inconsistent with the rest of the country without the same law governing online game operators. 


In principle, online games that require the use of skill for example- online-based skills, are allowed, while lucky games are regulated by the Public Gambling Act. Indian courts have declared in various cases that games where the candidate's success depends on the use of "tangible ability", such games will not be enforced by Indian gambling laws, or in the game of chance. Some states have also enacted laws other than 'skill games' within the interest of gambling laws. Online gambling is an issue under the State System; that is why countries are allowed to make regulations in this regard. Online gambling (a skill based on online games) can be understood including three main types of games: Real money games, mobile cents / gaming games, and e-sports.

As the industry has grown exponentially, concerns have been raised about the creation of a regulatory framework to address the online sports sector. Although no official online gaming regulations are in place, the Advertising Standard Council of India (ASCI) has recently issued new guidelines governing the sale of real-money games. Fun games, a set of real money games, are one of the most popular sports in India. As players from various industries seek to make the specifications of such games more explicit, NITI Aayog recently proposed draft guidelines for the management of online fiction games in India. These guidelines are for text only and are currently open for reviews and comments from industry stakeholders.


With the potential for growth in the online gaming industry, there is a desire to build more businesses in India. Here is a brief outline of the requirements for setting up such a business in India:


As an online based gaming company, hardware, software, and network (software management software) essentials will be required to set up a business. 


Instead of starting a business on your own, it is possible to collaborate and collaborate on online games aimed at expanding. 


Generally, 'skill games' are not required to obtain licenses. However, the provinces of Sikkim and Nagaland have enforced their online gaming laws, and licenses under these rules will have to be obtained. 

FDI Investments:

In India, 100% of foreign direct investment is allowed under the automatic online gaming channel which falls under the fields of Electronic system, IT and BPM. This means that approval from the relevant departments is not required for that investment.


  • Minors: Guidelines state that advertisements for these games should not expose any children (under the age of 18) as playing those games, or suggest that children may play these games. It should include the following obligation to exit responsibility: “This game is financially risky and can be addictive. Please play responsibly and put yourself at risk. The exemption clause must meet the following requirements:

  • If the ad is in print mode, it should not take less than 20%. The ad must also comply with ASCI's 4 Exit Guidelines for Ad Guidelines. If the ad is loud / clear, then the excerpt phrase should be placed in the normal spoken word at the end of the ad, in the same language as the advertisement.

  • Online gambling with real money winnings should not be presented as an opportunity to earn money from their ads. Also, ads should not seek out or show people involved in online games more successful than others.

The guidelines developed by ASCI are self-regulating, but ASCI decisions are binding on all its members. In addition, the Department of Broadcasting has also issued recommendations to request Independent TV Channels to follow ASCI guidelines. These guidelines were applied after convening a meeting with industry stakeholders, and were issued as part of an effort to make online games more visible and secure.


Taking under consideration the big range of classified ads performing on television and different styles of media, the Ministry of Information and Broadcasting has issued an declaration asking for all non-public television broadcasters to comply with the suggestions issued through ASCI.

It is predicted that the suggestions will assist to make online gaming more secure and extra transparent. Furthermore, the structures could be predicted to difficulty extra accountable and honest classified ads. Overall, its miles a advantageous step for an enterprise this is anticipated to reach $3.seventy five billion in fee through 2024.


Recent events highlight and the need to protect players but there may be solutions without a total ban on online games. Instead, appropriate checks and balances may be considered. For example, Niti Aayog recently issued guidelines for fairy tale sports which include establishing a governing body, retaining power in sports, seeking approval from an independent paid sports committee, minimum 18 years of participation, non-discrimination and exposure to game terms and conditions, misuse policies, marketing practices, etc. The Advertising and Standards Council of India has also recently published guidelines for real-world sports betting ads. But first, the outdated laws of the land need to be enacted in order to recognize online games as they are played today. It may no longer be necessary to ban a game only because it is for the benefit of game owners or for stakes. Equality in legal treatment in all provinces may be a difficult challenge to overcome. Perhaps the Central Government could take steps to encourage international dialogue to bring about certain legal precedents. Since many of the country's laws are based on the provisions of the Old Law, they may consider a sample amendment to the Old Law to identify (or prohibit) online games. The guiding principles of Niti Aayog are an excellent start and reflect a good intention from the government. We hope that this will pave the way for a clear legal framework for modern gambling.


Damini Nagar
B.A LLB from Indore institution of Law

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