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 Betting on the outcome of games won't be allowed by online gaming companies under the draft rules, Minister of State for Electronics and IT, Rajeev Chandrasekhar, said on Monday.

"As per the principles laid under the rule, wagering on the outcome of a game will not be allowed. All online gaming companies will have to register with the self-regulatory body that will decide on the action required to be taken as per the rules," Chandrasekhar said.

The rules are meant for encouraging innovation and helping the online gaming sector, the minister said.

The ministry has published draft rules for online gaming companies and has invited comments on them by January 17.

Chandrasekhar said that the online gaming rules would be finalised by early next month.