India Approves Online Gaming Bill to Regulate Fast-Growing Digital Gaming Sector

Strategic Insights -

The Union Cabinet has approved the Online Gaming Bill, aiming to regulate the rapidly growing digital gaming sector and curb online betting. The proposed Regulation & Promotion of Online Gaming Act seeks to ban money-based gaming transactions, banning advertisements promoting real-money games, and encouraging e-sports and non-monetary skill-based games. The legislation also imposes strict penalties on unregistered or illegal operators. The Bill is expected to be introduced in the Lok Sabha on Wednesday.

Key Takeaways:

  • The proposed Regulation & Promotion of Online Gaming Act bars banks and financial institutions from processing or transferring funds for real-money games.
  • The legislation seeks a blanket ban on advertisements promoting platforms that offer real-money games, while encouraging e-sports and non-monetary skill-based games.
  • Strict penalties are planned against unregistered or illegal operators, including unauthorised betting.
  • The Ministry of Electronics and Information Technology (MeitY) is designated as the central regulator for the online gaming sector, with powers to block unregistered or illegal platforms.
  • The legislation is expected to address concerns around fraud, addiction, and conflicting state laws.
  • Over 1,400 betting and gambling apps and websites have been blocked by the Centre between 2022 and February 2025.
  • Growing addiction among minors has prompted the Education Ministry to issue advisories to parents and teachers.
  • The Information and Broadcasting Ministry has directed broadcasters to carry disclaimers highlighting financial risks linked to online gaming.

Statistics:

  • The online gaming industry has been under close watch since October 2023, when the government imposed a 28% GST on such platforms.
  • From FY25, winnings are taxed at 30%, and offshore operators have been brought within India's tax net.
  • The Centre has blocked over 1,400 betting and gambling apps and websites between 2022 and February 2025.
  • Pills and unauthorised betting have prescribed up to seven years' imprisonment and steep fines.
  • The Ministry of Electronics and Information Technology (MeitY) is expected to oversee the regulation of the online gaming sector.

Sources:

  • India Today
  • HT Digital Content Services with permission from India Blooms