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While the multi-billion-dollar gaming industry is understandably dismayed by this proposal, there is a strong sentiment within the government that such a move is essential
This effectively includes a complete ban on endorsements by celebrities and social media influencers, a measure intended to curb the appeal of these platforms to a wider, often impressionable, audience. Representational image
The Indian government is moving to strictly regulate the online gaming industry, with a particular focus on apps that involve money transactions. The union cabinet on Tuesday approved the Online Gaming Bill, which aims to monitor the sector and curb illegal betting. The bill and a related note indicate a clear intent to protect vulnerable users and ensure these platforms are not exploited for money laundering or as a threat to national security. The proposed legislation seeks to create a stringent framework that targets the financial aspects of online gaming.
According to the accessed note, the government’s approach is to prohibit any involvement in “the offering of online money game and online gaming service”. This ban extends beyond the operators, explicitly targeting any form of promotion. The bill states that “no person shall make, cause to be made, aid, abet in any media or a communication which promotes any person to play an online money game or indulge in online money app”. This effectively includes a complete ban on endorsements by celebrities and social media influencers, a measure intended to curb the appeal of these platforms to a wider, often impressionable, audience.
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The penalties proposed for non-compliance are severe. Anyone found offering an online money gaming service could face up to five years of imprisonment. For those involved in endorsements, the punishment includes imprisonment of up to two years and a hefty fine ranging from Rs 50 lakh to Rs 1 crore. Government sources have clarified that these regulations will not affect gaming apps used purely for entertainment with no money involved.
While the multi-billion-dollar gaming industry is understandably dismayed by this proposal, there is a strong sentiment within the government that such a move is essential. Officials believe the unchecked exponential growth of money-based gaming has led to significant mental health issues among the young generation, stemming from the addictive nature of these games and the financial risks involved. The government is careful to distinguish between this sector and e-sports, which it sees as a legitimate sport that could even be included in the Olympics.
In response, a gaming industry source argued that a “blunt response like banning a service altogether quite literally forces consumers to the black market”. This, the source explained, would push users toward illegal, offshore betting platforms, which would expose India to a greater risk of data pilferage, hawala transactions, money laundering, and exploitation by loan sharks. The source advocated for a more “nuanced approach” of regulation to protect national interest and consumer welfare through measures like KYC and financial safeguards, rather than an outright ban.
About the Author
Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als…Read More
Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als… Read More
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