Cabinet clears Online Gaming Bill to curb betting, set up national regulator for sector
New Delhi: The Union Cabinet on Tuesday approved the Online Gaming Bill, aimed at regulating the fast-growing digital gaming sector and curbing online betting.
India Today reported citing sources that the Bill is expected to ban all money-based gaming transactions once it comes into effect.
Key proposals under the legislation
The proposed Regulation & Promotion of Online Gaming Act bars banks and financial institutions from processing or transferring funds for real-money games.
It also seeks a blanket ban on advertisements promoting such platforms, while encouraging e-sports and non-monetary skill-based games. Strict penalties are planned against unregistered or illegal operators.
The legislation is likely to be introduced in the Lok Sabha on Wednesday.
Tax and legal backdrop
The online gaming industry has been under close watch since October 2023, when the government imposed a 28% GST on such platforms.
From FY25, winnings are taxed at 30%, and offshore operators have been brought within India’s tax net.
In December 2023, the Bharatiya Nyaya Sanhita criminalised unauthorised betting, prescribing up to seven years’ imprisonment and steep fines.
The Centre has also blocked over 1,400 betting and gambling apps and websites between 2022 and February 2025.
Concerns over addiction
Growing addiction among minors has prompted the Education Ministry to issue advisories to parents and teachers.
The Information and Broadcasting Ministry has also directed broadcasters to carry disclaimers highlighting financial risks linked to online gaming.
National regulator for the sector
The Bill designates the Ministry of Electronics and Information Technology (MeitY) as the central regulator for the online gaming sector, with powers to block unregistered or illegal platforms.
By creating a uniform regulatory framework and restricting real-money gaming, the government hopes to address concerns around fraud, addiction, and conflicting state laws.
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