Today (Tuesday), the Modi government has made a crucial decision in the realm of cash-involved online gaming. In a meeting chaired by Prime Minister Narendra Modi, the central cabinet has approved the online gaming bill. Under this legislation, online betting will be deemed a punishable offense, and monetary gaming transactions will be entirely prohibited. This information comes from reliable sources.
The bill is expected to be presented by the Modi government in Lok Sabha on Wednesday. According to sources, the bill prohibits any bank or financial institution from processing transactions related to online money games. Additionally, there will be a ban on advertisements promoting real money gaming. Furthermore, the government aims to promote e-sports and skill-based non-monetary games.
What is the purpose?
To regulate digital betting (online gambling) nationwide
To tackle addiction and fraud issues related to gambling
To coordinate among different state gambling laws
To designate the Ministry of Electronics and Information Technology (MeitY) as the central regulator
To empower authorities to block illegal or unregistered platforms
Online gaming has already been subject to taxation. In its previous term, by October 2023, the Modi government imposed a 28% GST on online gaming platforms. This has increased by an additional 2% starting this fiscal year. Furthermore, from the financial year 2025, a 30% tax has been levied on online gaming winnings.
This bill also includes foreign gaming operators within the tax net. In December 2023, unauthorized betting under the Indian Penal Code was subjected to provisions enabling up to 7 years in prison and hefty fines.
The central government has been taking stringent actions against online betting and related sites. Between 2022 and February 2025, over 1,400 betting and gambling sites and apps have been blocked. The Ministry of Information and Broadcasting has instructed gaming-related ads to include disclaimers about financial risks and potential addiction.
