The Union Cabinet on Tuesday approved the Online Gaming Bill. The proposed law aims to regulate the booming virtual sector and curb illegal betting. Prompted by rising fraud linked to digital betting apps and celebrity endorsements, the bill aims to bring all platforms under a clear legal framework.
The bill is expected to be presented in the Lok Sabha on Wednesday.
What Is The Online Gaming Bill?
The Online Gaming Bill seeks to regulate online gaming in India and make betting via digital platforms a punishable offence. The bill highlights concerns over:
- Addiction.
- Fraud.
- Inconsistencies in state laws regarding gambling.
It proposes stricter oversight of gaming platforms, particularly those offering real-money games. It may designate the Ministry of Electronics and Information Technology (MeitY) as the central regulator for online gaming. The bill may also empower authorities to block unregistered or illegal gaming sites.
Why The Bill Was Introduced
The bill comes in response to:
- Rising fraud cases tied to online betting apps.
- Celebrity and influencer promotions of betting platforms.
- Offshore operators flouting compliance norms.
- The need to make online gaming safe, accountable, and responsible.
The bill aims to create a uniform legal framework across states while preserving states' authority over gambling, which remains in the State List of the Constitution.
What The Bill Proposes
Punishable Offences:
- Betting via online platforms will be treated as an offence.
- Endorsements of unauthorised betting platforms may also attract penalties.
- Under previous criminal provisions, unauthorised betting could lead to up to 7 years in jail and fines.
Impact On The Online Gaming Industry
- India's online gaming industry is projected to more than double to $9.1 billion by 2029.
- Real-money games account for nearly 86% of revenues, with the market size estimated at $3.7 billion in 2024.
- The bill is expected to provide a formal regulatory framework while curbing illegal and fraudulent gaming operations.
Government Action In The Last Three Years
Over the past three years, the government has strengthened regulations to ensure a safe and accountable gaming ecosystem:
- MeitY issued 1,410 blocking directions against illegal betting, gambling, and gaming sites (2022-Feb 2025).
- Finance Act 2023 introduced a 30% tax on net winnings, while 28% GST on online gaming came into effect from October 2023. Offshore platforms have been brought under the Indian tax net.
- Enforcement of illegal betting remains with states, with Section 112(1) of the Bharatiya Nyaya Sanhita, 2023, punishing unauthorised betting with 1-7 years imprisonment and fines.
- Cybersecurity and data protection are strengthened under the Digital Personal Data Protection Act, 2023 and the IT Act.
- To combat addiction and financial risks, the Education Ministry issued advisories, the I&B Ministry mandates disclaimers on gaming ads, and the Home Ministry launched the Indian Cyber Crime.
- Coordination Centre (I4C), the National Cyber Crime Reporting Portal, and a toll-free helpline '1930' for online fraud complaints.
