CURRENT AFFAIRS
CURRENT AFFAIRS
Description
The Government of India introduced Bill No. 110 of 2025, titled The Promotion and Regulation of Online Gaming Bill, in the Lok Sabha. Passed rapidly, the Bill represents a shift from the earlier Information Technology Intermediary Rules of 2023. While it seeks to regulate online gaming, it imposes a comprehensive ban on real money gaming, raising concerns about the impact on Indian start-ups and foreign investment in the sector.
Legislative Background
The Bill comes amid persistent confusion over the legal definition of gambling and betting, which varies across states. Previous judicial interventions, including from High Courts and the Supreme Court, have overturned state-level bans on real money gaming. Despite these rulings, the new legislation proposes an all-encompassing ban on any online games involving monetary stakes. The Bill still permits e-sports, educational games, and social gaming, but strictly prohibits operations involving real money.
Key Provisions Of Bill
The Bill prohibits offering, operating, facilitating, advertising, promoting, or participating in online money games. It includes any payment, deposit, or stake made with the expectation of monetary returns. The legislation covers games operating across state lines or from foreign jurisdictions. In addition, banks and financial institutions are barred from processing transactions linked to online money gaming. The Bill also establishes an authoritative body to classify games and enforce compliance.
Penalties And Enforcement
Violations carry stringent consequences:
Operating online money games: up to 3 years imprisonment and fines up to Rupees 1 crore
Advertising or promoting such games: up to 2 years imprisonment and fines up to Rupees 50 lakh
Facilitating financial transactions: similar penalties
Clause 11 ensures accountability extends to companies and responsible individuals, making them liable for prosecution.
Impact On Industry And Economy
While the Bill aims to tackle gaming addiction, fraud, debt, and national security concerns, it poses a threat to legitimate Indian online gaming start-ups that generate employment and tax revenue. Analysts warn the ban may drive users to illegal offshore platforms, increasing unregulated activity. The industry anticipates a potential loss of Rupees 20,000 crore in tax revenue and disruption of an additional Rupees 6,000 crore allied sector including advertising, technology, and infrastructure.
Industry Response And Responsible Gaming Initiatives
Bodies like the All India Gaming Federation and the Federation of Indian Fantasy Sports have implemented codes of conduct for responsible gaming, including:
Age verification
Spending limits
Self-exclusion options
User awareness and education programs
These voluntary frameworks advocate regulatory safeguards rather than blanket bans. The industry has urged the government to adopt balanced regulation, empowering users while maintaining oversight.
Pending Legal Developments
The Bill is awaiting Rajya Sabha approval and may face judicial challenges, given prior court decisions. Additionally, a Supreme Court case on GST for online gaming could reshape the sector’s fiscal landscape. Future amendments may address issues like addiction and financial discipline without stifling innovation and growth in the gaming industry.
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