Government Moves to Regulate Gaming, Prohibit Online Betting

Cabinet Approves Online Gaming Bill

The Union Cabinet on Tuesday approved the Online Gaming Bill. The move aims to regulate India’s fast-growing digital gaming sector and end online betting. According to senior officials, the government will introduce the legislation in the Lok Sabha on Wednesday.

Ban on Money-Based Transactions

The Bill prohibits all money-based gaming transactions. Banks and financial institutions cannot process or transfer funds for real-money games. With this step, the government intends to shut down pay-to-play games that involve cash deposits or winnings, whether skill-based or chance-based.

Restrictions on Advertisements

The legislation also bans advertisements that promote real-money gaming platforms. At the same time, it encourages the growth of e-sports and non-monetary skill-based games. By placing clear restrictions, the government seeks to reduce the visibility and influence of betting apps across the country.

Rising Concerns Trigger Action

The decision follows a series of earlier measures. The government imposed a 28% GST on online gaming in October 2023. From FY25, winnings from such games attract a 30% tax. Authorities also blocked more than 1,400 betting websites and apps between 2022 and February 2025. Additionally, new provisions under the Bharatiya Nyaya Sanhita criminalised unauthorised betting with strict penalties.

Tackling Addiction and Risks

The Education Ministry issued advisories warning parents and teachers about gaming addiction among minors. Similarly, the Information and Broadcasting Ministry directed broadcasters to display disclaimers on financial risks linked to online games. With the new Bill, the government wants to address these concerns with stronger legal backing.

MeitY as Central Regulator

The Bill empowers the Ministry of Electronics and Information Technology (MeitY) to act as the central regulator. The ministry will gain authority to block unregistered or illegal platforms operating in India. This national framework aims to cut fraud, limit addiction, and reduce legal confusion between states.