Online gaming companies will not be allowed to engage in betting on the outcome of games under the principle laid in draft rules, Minister of State for Electronics and IT Rajeev Chandrasekhar said on Monday.

The minister said that as of now, all permissible online gaming will need to be registered with a self-regulatory organisation that will be accountable to the online gaming rules.

"As per the principles laid under the rule, wagering on the outcome of 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 Ministry of Electronics and IT has published draft rules for online gaming companies and has invited comments on the same by January 17.

The objective of the rule is to grow the online gaming sector and encourage innovation, he added.

The minister said that he expects the online gaming rules to be ready in early February.