The Union Cabinet approved on Tuesday an online gaming bill, in which betting via digital platforms will be regarded as punishable and penalties may be imposed on endorsements according to people familiar with the matter.
The bill is likely to be introduced in the Lok Sabha on Wednesday, the sources said on the condition of anonymity.
The Ministry of Electronics and Information Technology may be designated as the central regulator for online gaming. The proposed bill flags concerns over addiction, fraud and inconsistencies across state laws.
The bill is aimed at bringing online gaming platforms under formal regulation, while introducing stricter checks on betting and gambling activities, said a MeitY source.
This development comes as India continues to tighten oversight of the online gaming sector. A 28% goods and services tax has been imposed on online gaming activities since October 2023.
Winnings from such platforms have been taxed at 30% starting from fiscal 2025, and offshore gaming platforms have also been brought under the Indian tax net.
Authorities are empowered to block unregistered or illegal gaming sites, and over 1,500 blocking directives have been issued against illegal betting, gambling and gaming websites since 2022.
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