Online Gaming Regulation Bill, 2022- A brief introduction

The Online Gaming (Regulation) Bill, 2022 (“Bill”) was introduced in the Lok Sabha on April 1, 2022 to establish an effective regime for regulating online gaming industry to prevent fraud and misuse.

The definition of “Online Gaming” under the Bill includes any game played on the electronic devices such as personal computers, mobile phones, tablets, and other devices. Since the definition does not differentiate between ‘game of skill’ and ‘game of chance’, it is apparent that the Bill aims to regulate all kinds of games played on such electronic devices.

The Bill encompasses constitution of a regulatory commission namely, Online Gaming Commission (“OGC”) consisting of five members nominated by the Central Government, with at least one expert each from the field of law, cyber technology and one person with experience in law enforcement. The OGC will be empowered to, inter alia, oversee the functions of online gaming websites; make periodical or special reports on matters pertaining to Online Gaming; suggest appropriate measures to control and curb illegal Online Gaming; grant, suspend and revoke licenses for online gaming websites and determine the fee for license applications and license renewals of such websites.

The Bill proposes to prohibit engagement of Online Gaming without a website and a non-transferrable and non-assignable license. Any person operating an online gaming server or an online gaming website without such license is punishable with imprisonment up to three years along with fine. The license will be valid for a term of six years.

The license proposed to be granted under the Bill may be suspended or cancelled if the licensee breaches any of the conditions of the license or, contravenes any of the provisions of the Bill. However, the Bill excludes its application to any person providing backend services in India including hosting and maintenance services for any international gaming website based outside India.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.