The Union Cabinet has given its nod to a new bill aimed at regulating online gaming platforms, with a focus on banning those offering real money gaming services. A source revealed that the bill is expected to be introduced in Parliament soon, marking a significant shift in how online gaming will be governed in India.
The proposed legislation comes amid growing concerns over the mental health risks associated with online money gaming. The government has identified these platforms as potential enablers of money laundering, fraud, and cybercrime.
Under the current legal framework, states and Union Territories hold the responsibility for tackling illegal betting and gambling. However, the new bill seeks to centralize some of this regulatory power, addressing loopholes that have allowed certain platforms to operate unchecked.
Several real-money gaming companies have attempted to classify themselves as “games of skill” to avoid bans, arguing that they differ from traditional gambling. However, recent court rulings have dismissed these claims. In June, the Madras High Court rejected petitions from major gaming firms like Play Games 24X7 and Junglee Games, upholding a ban imposed by the Tamil Nadu government.
The court emphasized that states have the authority to legislate on matters affecting public health. It also dismissed arguments that central IT Rules 2021 provided sufficient safeguards for these platforms, noting that the rules had not yet been fully implemented.
The Tamil Nadu government, backed by an expert committee report, highlighted severe consequences of real-money gaming, including mental health deterioration and even suicides. This has fueled the push for stricter regulations.
The central government has already taken action against illegal online betting, issuing over 1,500 blocking orders between 2022 and mid-2025. The Directorate General of GST Intelligence currently has the power to block unregistered gaming platforms under the IT Act and IGST Act.
Online money gaming platforms are also subject to taxation under the Integrated GST Act, adding another layer of regulation. As the bill moves toward parliamentary discussion, the future of real-money gaming in India hangs in the balance.
The debate isn’t just about legality but also about public welfare. With mental health risks and financial crimes linked to these platforms, the government’s crackdown aims to strike a balance between entertainment and safety.