MUMBAI: India’s cabinet approved sweeping legislation on Tuesday that will make online betting a criminal offence, dealing a severe blow to the country’s booming digital gaming sector. The Online Gaming Bill, set to be introduced in parliament on Wednesday, represents the government’s most aggressive move yet to regulate an industry projected to reach $9.1 billion by 2029.
Under the new law, banks and financial institutions will be barred from processing payments for real-money gaming platforms, effectively choking off funding to betting operations. The legislation also prohibits advertisements promoting monetary gaming whilst encouraging skill-based games and e-sports.
The crackdown follows a surge in fraud cases linked to offshore betting platforms and their celebrity endorsers. Unauthorised betting already carries penalties of up to seven years in prison under existing criminal provisions, but the new bill strengthens enforcement mechanisms and expands the scope of punishable offences.
Real-money games currently account for 86 per cent of revenues in India’s online gaming market, valued at $3.7 billion in 2024. The sector has been under increasing scrutiny since the government imposed a 28 per cent goods and services tax in October 2023, followed by a 30 per cent levy on net winnings.
The ministry of electronics and information technology is expected to serve as the central regulator, with powers to block unregistered or illegal gaming sites. Since 2022, authorities have already blocked more than 1,400 betting and gambling websites.
The legislation aims to create uniform regulations across states whilst preserving their constitutional authority over gambling matters. The government has issued advisories warning parents and teachers about gaming addiction, whilst broadcasters must now carry disclaimers about financial risks in gaming advertisements.
Industry observers warn the ban could drive the sector underground, potentially exposing users to greater fraud risks. However, officials argue the measures are essential to protect consumers from addiction and financial exploitation in an increasingly unregulated digital landscape.