India's Union Cabinet Approves Online Gaming Bill To Regulate Gambling Activities

The Union Cabinet has given its approval to the Online Gaming Bill. This legislation introduces stringent measures, including penalties and potential bans on online games that involve betting or gambling.

According to sources, the bill is set to be presented in the Lok Sabha tomorrow. It aims to distinguish between online games meant for entertainment and those involving monetary stakes. Regular online games are said to not face restrictions and might even be part of global Olympiads within a decade.

Taxation and Regulation

Even celebrities are prohibited from endorsing or promoting gaming apps related to betting, with legal consequences for those who violate this rule. The bill aims to bring online gaming platforms under a legal framework while imposing strict penalties on gambling. In recent years, the government has tightened its oversight of the sector.

Since October 2023, a 28% GST has been imposed on online gaming activities. Player winnings have also been subjected to a 30% tax starting from the fiscal year 2024–25. The tax framework has been expanded to include offshore platforms, empowering authorities to block sites that are unregistered or illegal.

This legislative move reflects the government's ongoing efforts to tighten regulations in the online gaming industry. By imposing these taxes and restrictions, authorities aim to curb illegal activities while distinguishing between harmless entertainment and gambling-related games.

The proposed bill's focus on separating entertainment from gambling highlights a significant step towards regulating the rapidly growing online gaming sector. With these measures, the government seeks to ensure responsible gaming practices while addressing concerns related to betting and gambling.

Via