A new bill banning all online real-money gaming was table in India today (20 August).
The Promotion and Regulation of Online Gaming Bill, approved by the Cabinet yesterday, would impose a total ban on online real-money gaming amid rising concerns about addiction and other harms.
If approved, it would devastate India’s nascent skill-based gaming sector, which would only be legally permitted to offer free-to-play versions of its games.
One potential victim of this includes Flutter, which acquired a majority stake in Rummy operator Junglee Games in 2021.
The proposed law states: “No person shall offer, aid, abet, induce or otherwise indulge or engage in the offering of online money game and online money gaming service.”
Penalties for breaching the law include up to three years in prison and a fine of approximately €100,000.
In addition, gambling advertising would also face a complete ban in all forms of media, including online ads.
Bank and financial institutions are therefore prohibited from facilitating any transactions for online real-money gaming services.
Offshore sector likely beneficiary of India ban
Such a ban will be music to the ears of the offshore sector, which has a sizeable presence in India, notably enjoying a complete monopoly in the hugely popular cricket betting vertical.
Although a total ban was one possibility, many had expected the legislation to create a national regulatory framework for the real-money gaming industry instead.
Alongside this blow to the domestic sector, the bill includes other provisions, such as the recognition of eSports as a legitimate sport.
Meanwhile, a central authority will be formed to oversee online social games, including via registering all titles and coordinating policy between states.
The ban comes just days after reports of a 40% Goods & Services Tax (GST) hike on gaming services being implemented under Narendra Modi’s consumption levy reforms.
