New Delhi: The Lok Sabha has passed the Online Gaming Regulation Bill, introduced by Union Minister Ashwini Vaishnaw and cleared by the Cabinet earlier this week. The bill aims to curb rising addiction, money laundering, and financial frauds.
Once implemented, all monetary transactions related to online gaming will be banned. Banks and financial institutions will not be allowed to process payments for such games. Advertising of gaming and even promotion of e-sports will be completely prohibited. Unregistered or illegal platforms will face strict action.
Since October 2023, online gaming has been subject to 28% GST, and from FY 2024–25, winnings will attract 30% tax. Offshore operators have also been brought under the Indian tax regime. Under the Bharatiya Nyaya Sanhita, illegal betting is now a criminal offence punishable with up to 7 years’ imprisonment. The IT Ministry will serve as the nodal regulator with powers to block illegal sites.
