The code, which is largely self-serving, in its stated objectives says that it aims to protect the interests of consumers and enable them to make informed choices about the online games they access, and create a “healthy environment” for online games in India, among other things.

As per the code, online gaming companies will undertake know-your-customer (KYC) as per applicable laws. To separate themselves from gambling firms, the code says that online gaming companies will specify on their sites the manner of determination of winners, the platform fee charged, and ensuring that deposits for online gaming services are utilised only for playing games on the platform.

In April, the Ministry of Electronics and IT (MeitY) had notified rules for online gaming which allowed for the setting up of self-regulatory bodies to vet the legitimacy of online games, with oversight of the government, among other provisions. These rules were notified after recommendations by an inter-ministerial task force.

The Indian Express had earlier reported that amid growing concerns the current rules lack legal teeth to effectively deal with the online gaming sector, the Centre has initiated a process to review the regulations, specifically to address apprehensions over offshore betting apps masquerading as online games and the potential for money laundering posed by players in the sector.

It is learnt that the fresh attempt is being led by the Union Home Ministry, with an inter-ministerial panel being formed to formulate tighter rules.

It is understood that the gaming rules notified by the IT Ministry have taken a back seat given that they are likely to be changed once the inter-ministerial group formally shares its recommendations. The IT Ministry is yet to accept any proposal to set up self-regulatory bodies despite having received multiple applications.