India’s parliament had approved a significant bill outlawing online gambling, targeting platforms offering card games, poker, and fantasy sports. The move follows alarming government data showing that nearly 450 million citizens were losing a combined $2.3 billion annually to these platforms.
The legislation, known as the Promotion and Regulation of Online Gaming Bill, criminalizes the promotion, funding, and operation of money-based online games, with penalties of up to five years in prison. However, offshore gambling sites can still accept players as they do not operate from the country and are not subject to its laws.
The new legislation also does not set penalties for players or anyone who gambles online. However, anyone who promotes gambling sites could face legal repercussions under the new law.
The Government’s Rationale
Government officials have stated that the newly passed legislation is a direct response to the growing concerns surrounding online gambling in India. The law is designed to address a range of serious issues, including rising addiction rates, widespread financial instability among users, and the proliferation of criminal activities such as fraud, money laundering, and even links to terrorism financing.
Prime Minister Narendra Modi underscored the dual purpose of the bill: while it imposes strict penalties on exploitative gambling platforms, it also seeks to foster a healthier digital ecosystem. He emphasized that the law will actively promote e-sports (competitive video gaming) and educational games that contribute to skill development and learning. These exceptions are intended to encourage innovation and growth within India’s digital economy, while drawing a clear line between constructive online engagement and predatory financial gaming.
By distinguishing between recreational and exploitative platforms, the government aims to protect vulnerable populations from manipulation and financial ruin, while still supporting digital entertainment and education as valuable tools for national progress.
Exceptions and Industry Pushback
The law clearly distinguishes between recreational digital games and gambling. E-sports and educational platforms are exempt and will be promoted as part of India’s digital economy. However, industry advocates had called for regulation and taxation instead of a full ban, warning that it could push more users towards offshore sites.
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