- The union cabinet has cleared a bill to regulate online gaming platforms
- The bill aims to address addiction, fraud, and state law inconsistencies
- MeitY may be appointed as the central regulator for online gaming
A bill to regulate online gaming has been cleared by the union cabinet, and is likely to be introduced in the Lok Sabha tomorrow, sources said. The Bill seeks to bring online gaming platforms under a legal framework and introduce penalties for gambling through digital apps.
The proposed law flags concerns over addiction, fraud, and inconsistencies across state laws and has provisions for penalty and punishment.
The Ministry of Electronics and Information Technology or MeitY could be designated as central regulator for online gaming.
The bill also is meant to put an end to unauthorised online betting.
Unauthorised betting already carries a fine and a seven-year jail term under the new penal code Bhartiya Nyaya Samhita. But its implementation depends on states.
The bill comes amid opposition allegations that the central government is "shying away" from its "moral responsibility" to take steps against online gaming.
The Centre had contended that the states are free to do so, since the implementation of the laws lies in their provenance.
The government has been in the process of tightening the online gaming sector, imposing 28 per cent GST on online gaming activities since October 2023.
Winnings were taxed at 30 per cent starting from the 2024-25 financial year. Offshore gaming platforms have been brought under the Indian tax net and the unregistered or illegal gaming sites are blocked.
Since 2022, more than 1,500 illegal sites for betting, gambling and gaming have been blocked.
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