The Centre will ban all “money-based gaming transactions” under the proposed Regulation & Promotion of Online Gaming Act. The Union Cabinet, chaired by Prime Minister Narendra Modi, on Tuesday approved the Online Gaming Bill, which makes online betting a punishable offence.
Sources told Business Today TV that under the Bill, no bank or financial institution will be allowed to permit transfer of funds for online money gaming. The legislation also proposes a prohibition on advertisements of real money gaming, while promoting E-sports and skill-based non-monetary online games. The Bill is expected to be introduced in the Lok Sabha tomorrow.
The new Bill aims to regulate the sector nationwide and make digital betting a punishable offence. It addresses concerns around addiction, fraud, and varying state-level gambling laws, while proposing tighter oversight of platforms offering real-money games. The legislation is expected to empower the Ministry of Electronics and Information Technology (MeitY) as the central regulator and authorise authorities to block unregistered or illegal sites.
Online gaming has been under the tax scanner since October 2023, when the government imposed a 28% GST on such platforms. From FY25, winnings from online games are taxed at 30%, and offshore gaming operators have been brought under the tax net. Authorities also hold the power to block unregistered or illegal sites.
In December 2023, new criminal provisions under the Bharatiya Nyaya Sanhita came into effect, making unauthorized betting punishable with up to seven years in jail and heavy fines. However, since “betting and gambling” fall under the State List of the Constitution, state governments retain the authority to act against illegal activities.
The Centre has already blocked more than 1,400 betting and gambling websites and apps between 2022 and February 2025. To address rising concerns of addiction, the Education Ministry has issued advisories to parents and teachers, while the Information and Broadcasting Ministry has directed broadcasters to carry disclaimers about financial risks and potential addiction in gaming-related advertisements.
