• UGI USER
  • Nov 25, 2023
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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.