Government Greenlights Legislation for Digital Gambling
India's Online Gaming Bill Aims to Regulate and Promote the Sector
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Promotion and Regulation of Online Gaming Bill, 2025. The purpose of this bill is to promote and regulate the online gaming sector, supporting e-sports and online social gaming while banning online money games that pose social, financial, and security risks.
The bill aims to ban online money games, which involve monetary stakes with the expectation of financial returns, applying to both skill and chance-based games. On the other hand, online social games intended for entertainment, education, or skill development without monetary stakes will be allowed, with subscription fees that don’t count as stakes.
E-sports will be recognised and promoted as a legitimate sport under the National Sports Governance Act, 2025, with mandatory registration and a prohibition on betting or wagering. This move is expected to bring relief to the common man and MSMEs.
The bill also seeks to make it a punishable offence for those who misuse the online gaming platforms, due to potential risks to national security posed by illegal betting activities. The bill may bar celebrities and influencers from endorsing or promoting betting-related gaming applications, with any violation inviting legal action.
The central regulator for online gaming under this Bill is the newly established Online Gaming Authority. This Authority will provide uniform legal regulation, promote safe and transparent development of the industry, prevent harmful practices (such as money laundering and fraudulent models), and maintain public order and protection of public health related to online gaming.
The bill also empowers authorities to block unregistered or illegal sites and has provisions for penalties. Unauthorized betting already carries a fine and a seven-year jail term under the new penal code Bhartiya Nyaya Samhita. Since October 2023, a 28% GST has been levied on online gaming, and player winnings have been taxed at 30% starting FY 2024-25.
Meanwhile, no new information about the Maharashtra land scam or the damage to crops and loss of life due to heavy rains was provided in these paragraphs. Over 5.4 Lakh hectares of crops have been damaged, and 8 people have died as heavy rains batter Maharashtra.
The government is trying to table the online gaming Bill in Parliament on Wednesday. The move comes after a rise in fraud cases in recent months, with several investigating agencies stepping up action against celebrities promoting such applications.
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