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GOM SET TO TIGHTEN ONLINE GAMING RULES

Why in the News?

• Growing concerns prompt the Centre to review online gaming rules.
• Focus on offshore betting apps posing as games and potential money laundering.

Source: Money Control

Tighter Rules Initiated

• Inter-ministerial panel formed to address legal gaps and concerns in the current rules.

Contention with Self-regulation

• Current rules follow a self-regulatory model.
• Fresh attempt seeks to introduce stringent norms to curb online betting.

Consensus for Crackdown on Offshore Platforms

• Government Alignment
  • Consensus to crackdown on offshore betting platforms.
  • Formation of an inter-ministerial group to recommend tough norms.
• MeitY’s Previous Rules
  • In April, MeitY notified rules allowing self-regulatory bodies for online gaming.
  • Concerns arise, prompting a relook at rules due to offshore betting.

• Informal GoM for Holistic Approach
  • Informal Group of Ministers (GoM) formed to adopt an “all of government” approach.
  • Aims to harmonize current gaming rules and address various ministries’ concerns.

 Specific Concerns

• Home Ministry emphasizes deterring online gambling platforms.
• Finance Ministry shares insights on potential money laundering violations.

Fallout of Mahadev Betting App

• Increased scrutiny and desire for a tough stance on offshore platforms.

GST Impact

• Initial 28% GST on online gaming prompts the need for stricter rules.
• Consensus that rules should be more stringent, especially for betting sites.

Back Seat for IT Ministry Rules

• Gaming rules notified by the IT Ministry take a back seat.
• IT Ministry yet to accept proposals for self-regulatory bodies.
• Formation awaits GoM recommendations on regulatory changes.

GoM expected to formally meet in the first two weeks of December.