The Ministry of Electronics and Information Technology (MeitY) recently told the Madras High Court. The provisions in the Information Technology Rules of 2021 are unenforceable, especially those regarding online gaming. This statement is part of an ongoing legal battle. The battle is against the Tamil Nadu Prohibition of Online Gaming and Regulation of Online Games Act, 2022. It also involves the accompanying regulations.
The Growing Challenges for Online Gaming Rules
Major gaming companies are challenging the IT rules. Companies like Play Games 24X7, Junglee Games, and Head Digital Works, which run popular platforms like A23, have voiced concerns over specific provisions. One of the biggest issues is the mandatory Aadhaar-based KYC (Know Your Customer) verification for players. The verification requires a one-time password (OTP) check for real-money gaming activities. Another contentious issue is the ban on real-money gaming between midnight and 5 a.m., a restriction that could hurt player engagement and revenue.
The Self-Regulatory Body Issue
The IT Rules of 2021, updated in April 2023, call for the creation of self-regulatory bodies to oversee online gaming. These bodies would be tasked with verifying real-money games and ensuring compliance with industry standards. However, MeitY has admitted that no such bodies have been set up yet, making the rules unenforceable. This regulatory gap has created more legal challenges for the government, which faces increasing pressure to resolve the self-regulation issue in the gaming sector.
Aadhaar and State Authority: A Continuing Debate
MeitY clarified that the Tamil Nadu government does have the right to impose time restrictions on online gaming. However, the use of Aadhaar for gaming verification remains a controversial point. The ministry stressed that Aadhaar is not mandatory for gaming verification and should only be used voluntarily for accessing government services, as per existing laws. Despite this, online gaming companies could still seek permission to use Aadhaar authentication on a voluntary basis, if their use case aligns with the State’s interests.
Government’s Stand on Regulating Online Gaming
In Parliament, IT Minister Ashwini Vaishnaw emphasized that the 2023 amendments aim to regulate the online gaming industry. These changes address concerns about the sector’s societal impact, particularly its effects on children. Vaishnaw explained that the self-regulatory bodies would focus on five main goals: preventing harmful content, restricting children’s access to games, combating addiction, enforcing age ratings, and enabling parental controls.
As the legal struggle continues, both the government and gaming companies are seeking clarity in an ever-evolving regulatory environment.
Source: Gutshot Magazine
