Under the proposed Regulation & Promotion of Online Gaming Act, banks and financial institutions will not be allowed to process or transfer funds for real-money online games.
The Bill is likely to ban all money-based gaming transactions once it comes into force. (Photo: GettyImages)
New Delhi,UPDATED: Aug 19, 2025 19:09 IST
On Tuesday, the Union Cabinet approved the Online Gaming Bill, a move aimed at regulating the rapidly growing digital gaming sector and putting a stop to online betting. According to government sources, the Bill is likely to ban all money-based gaming transactions once it comes into force.
WHAT THE BILL PROPOSES
Under the proposed Regulation & Promotion of Online Gaming Act, banks and financial institutions will not be allowed to process or transfer funds for real-money online games.
The Bill also proposes a complete prohibition on advertisements promoting real money gaming, continued promotion of E-sports and non-monetary skill-based games and strict action against unregistered or illegal gaming platforms.
The legislation is expected to be introduced in the Lok Sabha on Wednesday.
WHY THIS IS BEING DONE
Online gaming has been under scrutiny ever since the government imposed a 28% GST on such platforms in October 2023. From FY25, winnings from online games are taxed at 30%, and offshore gaming operators have been brought within the Indian tax net.
In December 2023, new criminal provisions under the Bharatiya Nyaya Sanhita made unauthorised betting a criminal offence, punishable with up to seven years in jail and heavy fines.
While “betting and gambling” fall under the State List of the Constitution, the Centre has already blocked more than 1,400 websites and apps involved in online betting or gambling between 2022 and February 2025.
ADDRESSING CONCERNS OF ADDICTION
The Education Ministry has issued advisories to parents and teachers, highlighting the growing risk of addiction among minors.
The Ministry of Information and Broadcasting has also directed broadcasters to carry disclaimers on the financial risks involved in online gaming.
CENTRAL REGULATOR TO OVERSEE SECTOR
The Bill seeks to empower the Ministry of Electronics and Information Technology (MeitY) as the nodal regulator for the online gaming sector. It will also give authorities the power to block any unregistered or illegal site operating in India.
By putting strict limits on real-money gaming and creating one set of rules for the entire country, the government hopes to cut down on fraud, addiction, and legal confusion across states.
– Ends
Published By:
Prateek Chakraborty
Published On:
Aug 19, 2025
