The Prime Minister Narendra Modi-led Union cabinet on Tuesday cleared the online gaming bill aimed at regulating online betting applications, reports said. The Bill will most likely be tabled in Lok Sabha today (Wednesday). This comes as number of cases of fraud increased in the past few months and the investigating agencies also tighten their grip on celebrities endorsing these applications.
With a motive to regulate the online betting, the Centre has cleared the Bill and it could be tabled in Lok Sabha for discussion on Wednesday. “The Cabinet has approved the bill to regulate online gaming platforms that involve real money. The government is trying to table the bill in Parliament on Wednesday,” reported PTI, citing a source.
According to reports, the Bill also has measures of penalty and punishment for acts including the promotion of online betting apps. This comes as the Centre is likely to levy a 40% Goods and Service Tax (GST) on online gaming in the revamped regime this Diwali.
Key Details of the Bill
The Bill is aimed at tackling the menace of online betting and gaming addiction involving real money. The proposed law will deal with frauds, addiction and inconsistencies, with punishment and fines part of it.
The Ministry of Electronics and Information Technology (MeitY) could be appointed as central regulator for the same as previously too, the Ministry has issued orders to block several such apps that allow online gambling.
The Online Gaming Bill 2025 may have the provision to bar the promotion of any of these applications. It is also likely to bring rule to cease financial transactions through banks or any other financial institution.
Furthermore, the Bill could define online game as any game involving real money, irrespective of skill or chance, reports said citing sources. This could mean that popular online card games platforms like Pokerbaazi, Rummy, other popular apps like Dream11, MPL, My11Circle and Parimatch would be directly hit.
Industry reaction on development
Reacting to the development, Nitin Goel, Country Manager, Indian Sub-Continent, Gameloft said he welcomes the step. “I welcome any legislation which can act as a detrimental to the proliferation of Online Real Money Gaming which in my opinion is a construct that has ramifications towards the larger society,” he told Financial Express.
Rameesh Kailasam, Indiatech.org stated that the online gaming industry currently employs more than 200,000 high-skill people, and has more than 400 start-ups and Rs 25,000 crore in FDI.
“Bill seems to be intended for real money offshore gambling and betting apps but is ending up targeting law abiding tax paying Indian startups,” he said.
Centre’s previous steps to regulate online gaming
The Government of India has been working to regulate the apps promising money through online gaming, leading to financial frauds and in some cases, crimes. Earlier in March this year, the Centre took several steps to regulate financial transactions and user data protection for digital platforms, including online gaming platforms.
Under the new penal code Bhartiya Nyaya Samhita, unauthorised betting already carries a fine and a seven-year jail term. The opposition parties have been asking the Centre for a concrete step on the matter. The government, however, has informed the states that the matter falls under their provenance and they can, too, deal with online betting facilitators with laws.
The government, with an aim to bring certainty in the levy of income tax in online gaming sector, vide Finance Act, 2023 introduced income tax at the rate of thirty per cent on the net winnings in the online games with effect from assessment year 2024-25.
In addition, Government also introduced GST at the rate of 28% in online gaming from October 1, 2023.
