The Modi government has taken a significant step in regulating the online gaming sector involving real money. In a cabinet meeting chaired by Prime Minister Narendra Modi on Tuesday, the government approved the Online Gaming Bill, which aims to curb online betting and real-money gaming transactions. According to sources, the bill declares online betting a punishable offence and completely bans money-based gaming transactions.
The government is set to introduce the bill in the Lok Sabha on Wednesday. As per the provisions, banks and financial institutions will be prohibited from processing payments for online money-based games. Additionally, advertisements related to real-money gaming will be banned. However, the government plans to promote e-sports and skill-based non-monetary games to encourage safe online gaming practices.
Objectives of the Bill
- To regulate digital gambling and betting across the country.
- To tackle addiction, fraud, and financial exploitation associated with online betting.
- To create uniformity among different state-level gambling laws.
- To make the Ministry of Electronics and Information Technology (MeitY) the central regulatory authority.
- To grant officials the power to block illegal and unregistered gaming platforms.
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Taxation and Financial Impact
Online gaming platforms are already under heavy taxation. Since October 2023, the government has imposed 28% GST on online gaming platforms. In the current financial year, the tax has been increased by an additional 2%, and from FY 2025, a 30% tax on online gaming winnings has been enforced.
The bill also brings foreign gaming operators under India’s tax network. Earlier, in December 2023, amendments to the Indian Penal Code introduced jail terms of up to seven years and hefty fines for unauthorised betting activities.
Government’s Crackdown on Betting Platforms
The Centre has been aggressively acting against illegal betting websites and apps. Between 2022 and February 2025, the government has blocked over 1,400 betting and gambling sites. The Ministry of Information and Broadcasting has also directed that financial risk warnings and addiction disclaimers be displayed in all gaming-related advertisements.