The Indian government has notified the rules that will establish the formal architecture to regulate the online gaming industry.
The rules, which will come into effect on May 1, clearly distinguish esports from online money gaming — a move which is expected to enable long-term investment in the sector.
India's online gaming market has seen exponential growth in the past few years,especially in the real-money gaming sector. However, until the new rules were announced, India lacked a unified national framework to address concerns of fraud and addiction.
The Ministry of Electronics and Information Technology, as per the new rules, will be able to classify a game as an Online Money Game (OMG), Online Social Game (OSG) or as esports.
The rules also require platforms to enforce user safety features, such as age-gating, time limits, and grievance redressal systems, while establishing an appeals mechanism and prescribing penalties for non-compliance.
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