Promotion and Regulation of Online Gaming Bill, 2025
The recent passage of the Promotion and Regulation of Online Gaming Bill, 2025 by Parliament marks a significant shift in the online gaming industry, imposing a complete ban on online money games involving both skill and chance.
Government's Rationale for the Ban
- Addressing Gaming Addiction and Mental Health: The government aims to combat gaming addiction and associated mental health issues.
- Preventing Financial Losses: It highlighted that around 45 crore people are affected, with losses exceeding Rs 20,000 crore.
- Fraud and Money Laundering Concerns: Some platforms have been implicated in fraudulent activities and money laundering.
Concerns Over the Ban
- Ineffectiveness of Bans: Historical evidence suggests bans are ineffective as they push activities to unregulated, offshore markets.
- Economic Implications:
- The real money gaming segment generated Rs 16,500 crore in 2023, projected to reach Rs 26,500 crore by 2028.
- Several platforms have suspended operations, affecting jobs directly and indirectly.
- Government finances impacted, with GST revenues from online gaming rising by 412% in six months to Rs 6,909 crore.
- Investment Deterrent: The capricious nature of policy may deter capital investment, with Rs 22,931 crore invested by domestic and foreign sources between 2019-2023.
Alternative Approaches
- Niti Aayog's 2020 Proposal: Suggested a light-touch regulatory framework for the fantasy sports industry.
- Recommendation for Regulatory Clarity: Emphasized the need for regulatory clarity, checks, and balances, and efficient grievance redressal mechanisms.
