NEW DELHI: In a move to curb gambling addiction, money laundering, and financial fraud, the Indian Parliament has passed the Online Gaming Bill, banning real-money online games.
After being cleared by the Lok Sabha on Wednesday, the Promotion and Regulation of Online Gaming Bill was approved by the upper house, Rajya Sabha a day later on Thursday. The bill, which effectively bans online gaming apps that charge users money to compete for cash prizes, now awaits the President's assent to become law.
“The government believes that the harms of addiction, financial loss and even extreme consequences such as suicides associated with online money gaming can be prevented by prevention of such activities,” according to a media statement released by the government.
"Additionally, online money gaming platforms are often misused for financial fraud, money laundering, terror financing and messaging activity that compromise national security," it added.
Recognition of esports as a competitive sport in India
The Online Gaming Bill formally recognizes esports as a legitimate competitive sport in India. The Union Ministry of Sports will be tasked with framing guidelines and standards for hosting esports events, along with setting up training academies, research centres, and technology platforms. The bill also proposes incentive schemes, awareness campaigns, and the integration of esports into the country’s broader sports policy.
Bill promotes safe and educational games
The Online Gaming Bill empowers the government to 'recognise, categorise, and register' online social games. This will be facilitated through the development of platforms for safe, age-appropriate social and educational games, with special emphasis on cultural and educational content that reflects Indian values.
Total ban on online money games
The Online Gaming Bill proposes a complete ban on offering, operating, or facilitating online money games, regardless of whether they are based on skill, chance, or both. Such games cannot be advertised or promoted through any form of media, and banks and payment systems are prohibited from processing related transactions. Existing online money games in the country will be blocked under the Information Technology Act, 2000.
Online gaming authority and its proposed responsibilities
The bill proposes the establishment of a National Online Gaming Authority to oversee the sector. Its responsibilities would include categorising and registering online games, determining whether a game qualifies as a money game, and handling complaints and grievances related to online gaming. The authority will also issue guidelines, directives, and codes of practice to ensure compliance with the country’s laws.
Offences & Penalties
The bill proposes imprisonment up to three years and/or fine of up to ₹1 crore for entities involved in or facilitating online money gaming.
Advertising such games will attract a penalty of ₹50 lakh or up to two years of imprisonment.
Any financial transaction related to money games will result in imprisonment of up to three years and/or a fine of up to ₹1 crore.
A repeat offence would attract enhanced penalties, including jail for 3-5 years and fine of up to ₹2 crore.
