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Union Cabinet Approves Online Gaming Bill Criminalizing Online Betting

The government plans to table the measure in the Lok Sabha on Wednesday.

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Genderless playing cards designed by Indy Mellink lie on a table in Oegstgeest, Leiden, Netherlands.
The Bill is likely to ban all money-based gaming transactions once it comes into force. (Photo: GettyImages)

Overview

  • The draft establishes a formal framework to regulate online gaming platforms and sets penalties for gambling conducted through digital apps.
  • Officials say it differentiates free-to-play from pay-to-play and skill-based from chance-based formats, and sources report curbs on celebrity or media promotion of illegal betting.
  • The push follows a rise in fraud cases and intensified scrutiny of offshore operators, with investigators questioning celebrities over promotions.
  • Existing steps include a 28% GST on online gaming since October 2023, a 30% tax on winnings from FY 2024–25, and the blocking of more than 1,400 betting and gambling sites since 2022.
  • States remain the primary authority over betting and gambling under the Constitution, and the bill still requires parliamentary passage before its provisions can take effect.