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Government Says IT Rules of 2021 For Online Gaming Not Enforceable

The Ministry of Electronics and Information Technology (MeitY) informed the Madras High Court that the provisions on online gaming in the Information Technology Rules of 2021 are unenforceable, as no self-regulatory body has been designated as required by the rules.

The submission was made as part of the ongoing challenge to the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022, and the regulations issued under it earlier this year.

Gaming companies, including Play Games 24X7, Junglee Games, and Head Digital Works (operator of A23), have contested the state act and its regulations. They specifically oppose the mandatory Aadhaar-based KYC verification, which requires a one-time password (OTP) for real money gaming, as well as the ban on such games between midnight and 5 a.m.

In April 2023, the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, were amended to regulate online gaming companies as online gaming intermediaries. Under these amendments, MeitY must designate self-regulatory bodies under Rule 4A to verify online real money games in accordance with the rules.

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The ministry stated that the Tamil Nadu government has the authority to impose time restrictions on online games played within the state.

The ministry clarified that Aadhaar can only be used voluntarily for availing subsidies, benefits, or services, in accordance with applicable Aadhaar laws and regulations.

However, the Union IT ministry stated that online gaming service providers could request permission to use Aadhaar-based authentication on a voluntary basis under the 2025 amendments to the Aadhaar Authentication of Good Governance (Social Welfare, Innovation, Knowledge) Rules, provided their use case serves the interest of the State.

In Parliament, IT Minister Ashwini Vaishnaw has repeatedly emphasized that the 2023 amendments were introduced to regulate online gaming companies and address their societal impact, particularly on children.

“Under the intermediary rules, a provision allows for the creation of a self-regulatory body. These rules ensure that any such body must focus on five key aspects: preventing the transmission of harmful content in online games, restricting children’s access to such content, mitigating addiction, implementing an age-rating mechanism, and enabling parental controls,” Vaishnaw stated in the Lok Sabha on March 19.

It remains to be seen what happens next in this issue, which is already becoming a long-standing issue in India. 

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