India's IT Ministry may ask fintech and payments companies to block "non-permissible" online games' access to their payment gateways, reported The Economic Times (ET). The move comes after the Indian government's recent notification of rules to regulate skill-based online games in India. Government officials speaking to ET added that while the rules regulate gaming "intermediaries" or platforms, they also apply to companies that "have anything to do with Indian games on the Internet". Publishers or portals carrying ads for online games could also find themselves under the regulatory scanner, aside from payments portals. The process of payment-blocking may take place once self-regulatory organizations overseeing the online gaming industry are set up. A quick recap: Under the gaming rules, a permissible online game is "an online real money game or any other online game that is not an online real money game". Permissible online real money games are those real money games verified by self-regulatory bodies. Why it matters: The move could help the government block operations of illegal (and offshore) online gambling companies, noted the government official speaking to ET. Online skill-based gaming companies have been crying foul about these gambling sites for years now, arguing that they offer illegal games to Indian citizens, which often cause harm to them too. On the flip side, online skill-based gaming companies see their operations as kosher—a position now somewhat legitimised by the government's rules to regulate this industry. Notably, the rules now ban games involving gambling, wagering on an outcome, or those that cause user harm.…
