India’s Union Cabinet cleared a draft law for stricter regulations concerning online gambling in the country. The bill includes provisions for regulating real-money games and platforms with betting elements, legal repercussions for violations, and penalties for promoting online gambling platforms. The bill was introduced to the Parliament on August 20, 2025.
Indian Online Gaming Bill: Key Points at a Glance
- The Online Gaming Bill seeks to regulate online gaming in India and prohibit dangerous activities like gambling with real money, which endanger consumers and pose a threat to national interests.
- The draft law brings all forms of online gambling under a unified framework, imposes penalties for gambling on digital platforms, and segregates free-to-play games from real money gambling games.
- This move is part of a wider government effort to make the internet, particularly online gaming, safe for consumers and promote responsibility and accountability among participants.
Online Gaming Bill Awaits Parliamentary Clearance
The Prime Minister Narendra Modi-led Indian Cabinet Union approved the Online Gaming Bill, which seeks to regulate online gambling platforms targeting Indian consumers. The bill was presented in Parliament on Wednesday, August 20, 2025.
“The Cabinet has approved the bill to regulate online gaming platforms that involve real money. The government is trying to table the bill in Parliament on Wednesday,” the report noted. If passed in Parliament, the bill could prohibit real money online gambling, gambling ads, and gambling-related financial transactions.
India’s online gambling market is currently valued at $3.7 billion and is expected to cross $9.1 billion by 2029, largely dominated by real-money games. Banning online gambling would not only cripple the industry, but also cause the government to lose millions in tax revenue.
The All India Gaming Federation (AIGF) has urgently written to the Minister of Home Affairs of India, Amit Shah, requesting intervention on the proposed bill and warning that a blanket ban would wipe out the sector. The federation has asked for “progressive regulation” instead of an outright ban, aligning with global standards.
The federation believes that blocking online gambling would only push millions of active players toward illegal gambling platforms. “The bill, if enacted, will cause serious harm and drive players into the hands of fly-by-night operators,” the federation noted, adding that a blanket ban would strike a “death knell” for the job-creating industry.
The Future of Online Gambling in India Still Uncertain
India’s Online Gaming Bill leaves little room for ambiguity. It sets strict rules for operators and financial transactions. Banks and other financial institutions will monitor transactions to these platforms, and gambling ads may face stricter oversight.
Ranjeet Mahtani, a Chartered Accountant and Partner at Mumbai-based Dhruva Advisors, noted:
The Online Gaming Bill introduces a comprehensive framework to regulate real-money gaming platforms, prohibit online betting, and penalise violations. It focuses on licensing, player safeguards, and responsible gaming. However, it does not address taxation, particularly GST, where disputes on rate and valuation remain pending before the Supreme Court.
The Indian government has taken several steps over the years to curb the growing influence of iGaming services among consumers. In October 2023, lawmakers announced a 28% Goods and Services Tax (GST) on gaming revenue. This was followed by a 30% tax on net winnings effective from FY 2024-25.
The Bharatiya Nyaya Sanhita (BNS) was amended in December 2023, criminalising unauthorised betting activities with penalties of including jail time. Since 2022, authorities have also blocked over 1,400 illicit gambling platforms targeting Indian consumers.