The Union Cabinet on Tuesday cleared the Online Gaming Bill, which seeks to regulate online real money gaming platforms and make online betting a punishable offence, sources said.
The bill is likely to be introduced in Parliament on Wednesday.
"The Cabinet has approved the bill to regulate online gaming platforms that involve real money. The government is trying to table the bill in Parliament on Wednesday," a source said to PTI.
The move comes amid a surge in fraud cases linked to online betting apps and growing concerns over celebrity and influencer promotions of such platforms.
Confirmed sources told Storyboard18 that the legislation is designed to “regulate online gaming and curb illegal activities that pose risks to national interest. No celebrities or media firms will be allowed to promote illegal online betting platforms,” adding that it also aims to support the growth of the esports and video gaming industry.
The bill will bring all online gaming platforms under a legal framework, introduce penalties for gambling through digital apps, and draw a clear distinction between free-to-play and pay-to-play games, while also differentiating between skill-based and chance-based formats.
Regulatory oversight of the sector has tightened in recent years.
Since October 2023, a 28 per cent GST has been levied on online gaming, while player winnings have been taxed at 30 per cent starting FY 2024–25.
The tax net has also been extended to offshore platforms, with agencies empowered to block unregistered or illegal sites. Between 2022 and February 2025, the government blocked over 1,400 betting and gambling websites and apps.
Last year, new provisions under the Bharatiya Nyaya Sanhita made unauthorised betting punishable with jail terms of up to seven years and fines, though states continue to hold primary authority over betting and gambling as these fall under the State List of the Constitution.
The education ministry has issued advisories to parents and teachers, while the information and broadcasting ministry has directed broadcasters to ensure gaming ads carry disclaimers about financial risks.
Officials said the broader aim of the bill is to make the internet — and online gaming in particular — safe, accountable and responsible.
India’s online gaming industry is projected to more than double to $9.1 billion by 2029, driven largely by real-money games, according to a report by WinZO Games and IEIC, which pegged the market at $3.7 billion in 2024 with nearly 86 per cent of revenues coming from real-money formats.
With inputs from agencies
