(Bloomberg) -- India has drafted regulations for the first time to oversee areas of online gaming that fall into a gray area between gambling and entertainment, seeking to resolve growing complaints of addiction particularly among minors.
The information technology ministry has published proposed rules governing apps or websites that involve an exchange of users' money, from online casinos and card games to fantasy sports clubs. That sets them apart from popular, competitive gaming titles such as Electronic Arts Inc.'s , which will be regulated by the sports ministry.
Online games have proliferated alongside the explosive growth of India's mobile population, creating a coterie of homegrown unicorns like Dream 11 Inc. and Mobile Premier League. But consumers have complained about the rise of titles that take money — sometimes from minors — in exchange for financial gain, saying they're stoking gambling addiction.
Online gaming companies will form a regulatory entity registered with the IT ministry, which released draft rules late Monday. Under the rules, the self-regulatory body's board would include a federal government nominee with experience in public policy, law enforcement, public administration or public finance.
The companies will also appoint a chief compliance officer who will be responsible for coordinating with law enforcement and make sure the companies implement measures to check players' identities and ages, the ministry proposed. The rules are open for public input and may get revised.
--With assistance from .
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