Online Gaming Bill: Strict regulation, hefty taxes better than a ban

THE Promotion and Regulation of Online Gaming Bill, 2025, passed by Parliament without a debate, outlaws any online game played with money. Describing online money gaming as a serious social and public health issue, the government has stated that it is keen to promote eSports and social gaming, which don’t involve any financial risk. The online skill gaming industry in India has grown by leaps and bounds in recent years, thanks largely to endorsements by current as well as former cricketers and film stars. Its annual revenue exceeds

Rs 31,000 crore and it contributes over Rs 20,000 crore in direct and indirect taxes every year. The ever-rising popularity of fantasy sports betting apps has a disturbing flip side: addiction, financial losses and money laundering. Some unlucky users have even been driven to suicide.

The government has assigned itself the onerous task of enforcing a blanket ban on online money gaming, apparently keeping public welfare above revenue loss. Ironically, a shutdown of legitimate platforms could make vulnerable users fall prey to unregulated offshore operators. This inevitable shift towards the no-holds-barred underground might defeat one of the Bill’s key purposes: safeguarding the integrity of financial systems as well as the nation’s security and sovereignty.

A possible trigger for the new legislation is the Rs 6,000-crore Mahadev online betting scam, which is being probed by the CBI and the ED. Some top politicians and bureaucrats from Chhattisgarh are accused of having links with the betting app’s UAE-based promoters, who were allegedly involved in hawala operations and overseas money laundering. This case is a wake-up call for all stakeholders, but it should not prompt a kneejerk reaction. Instead, subjecting money gaming to strict regulation and hefty taxation can be a workable solution. Laying stress on transparency and accountability — ensuring safeguards for consumers, imposing penalties on erring platforms, taking celebrities to task for making tall claims — can save this sunrise sector from a premature sunset. A drastic step such as a ban might prove to be counter-productive.

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