India notifies online gaming rules: Here is what you need to know

The Ministry of Electronics and Information Technology (MeitY) notified amendments to the Information Technology (Intermediary Guidelines and Digital Media E...

What Happened

The Ministry of Electronics and Information Technology (MeitY) notified amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, introducing a dedicated regulatory framework for online gaming — effective April 6, 2023.
The rules create a category of "permissible online games" and require real-money online games to be verified by government-designated Self-Regulatory Organisations (SROs).
Online gaming intermediaries are now required to follow specific due diligence obligations similar to social media intermediaries, including user protection measures, grievance redressal, and KYC norms.
Games involving betting and wagering remain prohibited; only skill-based and chance-based games that are verified by an SRO qualify as "permissible."
Subsequent legislation — the Promotion and Regulation of Online Gaming Act, 2025 — further consolidated the framework.

Static Topic Bridges

The IT Act 2000 and Intermediary Liability — Section 79

The Information Technology Act, 2000 is India's primary legislation governing digital infrastructure, cyber offences, and online intermediaries. Section 79 of the IT Act provides a "safe harbour" to intermediaries — they are not liable for third-party content hosted on their platforms, provided they observe due diligence and do not conspire in the unlawful act.

Section 79 safe harbour is contingent on compliance with due diligence requirements under the Intermediary Guidelines Rules.
The IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (under Section 87 of the IT Act) prescribe due diligence obligations for social media, digital news publishers, and OTT platforms.
The April 2023 amendment extended this framework to online gaming intermediaries by inserting a new Part IA into the Rules.
Rule 7 of the amended Rules provides that failure to comply with due diligence obligations strips an intermediary of the Section 79 safe harbour protection.

Connection to this news: Online gaming platforms that do not comply with the new rules — including SRO verification of their games — will lose Section 79 protection and become directly liable for content and harms on their platforms.

Self-Regulatory Organisations (SROs) in Online Gaming

The online gaming rules adopt a co-regulatory model: MeitY designates private SROs, which in turn certify individual games as "permissible." This is a departure from direct state licensing.

The government planned to designate up to three SROs; these bodies are responsible for verifying whether online real-money games meet the permissibility criteria.
A "permissible online real-money game" must not involve wagering or betting, must safeguard users from addiction and financial harm, and must meet KYC requirements.
SROs are required to publish safeguard frameworks on their websites, including session time warnings, self-exclusion options, and spending limits.
The due diligence obligations for online gaming intermediaries (under Rule 3) include: not hosting unverified online games, implementing parental control features, providing a complaint mechanism, and conducting KYC (Know Your Customer) verification.

Connection to this news: The SRO model aims for industry self-governance under government oversight, balancing innovation with consumer protection in a sector that had been operating in a regulatory vacuum.

Distinguishing Games of Skill from Gambling — Legal Precedent

Indian law has historically drawn a distinction between "games of skill" (legally protected) and "games of chance" (subject to state gambling laws). The Supreme Court in K.R. Lakshmanan v. State of Tamil Nadu (1996) held that a game involving substantial skill is not gambling even if it involves a monetary stake.

Entry 34, List II (State List) of the Seventh Schedule grants states the power to legislate on gambling and betting. This has led to a patchwork of state laws.
Several states (Tamil Nadu, Karnataka, Andhra Pradesh) had attempted to ban online real-money games including rummy and poker; courts struck these down as unconstitutional restrictions on games of skill.
The 2023 central rules represent the first attempt to create a uniform national framework, resolving the regulatory conflict between state gambling laws and skill-game protections.
The Promotion and Regulation of Online Gaming Act, 2025 provides a more comprehensive statutory basis, superseding the 2023 Rules.

Connection to this news: The central framework seeks to provide legal certainty to the online gaming industry — estimated at USD 2.8 billion — while distinguishing legitimate skill-based platforms from illegal betting and wagering operations.

Key Facts & Data

Notification date: April 6, 2023 — IT (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023.
Parent legislation: Information Technology Act, 2000 (Section 87 read with Section 79).
Key new provision: Part IA inserted into the Rules specifically for online gaming intermediaries.
Successor legislation: Promotion and Regulation of Online Gaming Act, 2025.
SROs: Up to three SROs to be designated by MeitY to certify permissible online games.
Prohibited: Games involving betting and wagering; unverified online real-money games.
User protections required: Session warnings, self-exclusion options, spending limits, KYC verification.
India's online gaming industry: Estimated at USD 2.8 billion, growing at ~28% annually.
Existing state gambling laws operate under Entry 34, List II (State List), Seventh Schedule.
Key Supreme Court precedent on skill vs. chance: K.R. Lakshmanan v. State of Tamil Nadu (1996).