Government amendments to India’s IT Act 2021 have been welcomed by start-up founders and industry associations, who say they provide regulatory clarity and will accelerate growth in the gaming sector. The amendments recognise online gaming intermediaries as legitimate entities and distinguish them from gambling. The Ministry of Electronics and Information Technology will allow multiple self-regulatory organisations to determine whether a real-money game is permissible to operate in India, with the government initially notifying three SROs. The regulations aim to bolster growth and innovation, protect consumers and promote transparency in the sector.

The Indian government has amended the IT Act 2021 to provide regulatory clarity for the country’s growing gaming sector. The amendments follow a public consultation in January and discussions with industry stakeholders, including gaming companies, lawyers and players. The rules will allow multiple self-regulatory organisations (SROs) to determine whether a real-money game can operate in India, with boards of directors comprising individuals with varied experiences relevant to the gaming sector. The regulations will protect user interests while providing oversight, and also enable business growth and innovation for legitimate domestic gaming platforms. The legislation will create clear distinctions between video games, real-money games and wagering games. Mobile Premier League co-founder Sai Srinivas called the move a “watershed moment for the industry” as it recognises intermediaries and distinguishes them from gambling. The Indian gaming market is expected to expand at a compound annual growth rate of 27% to $8.6bn in FY27.