Modi Cabinet Approves Online Gaming Bill Regulating Betting Apps, Seeks Ban

The Union Cabinet led by Prime Minister Narendra Modi has given the green light to the Online Gaming Bill aimed at regulating online betting applications, amidst a growing number of fraud cases and closer scrutiny on celebrity promoters. The bill is expected to be presented in the Lok Sabha for discussion today (Wednesday).

Key Highlights of the Online Gaming Bill 2025

• Objective:
  • To regulate online betting and gaming apps involving real money.
  • To curb fraud, gaming addiction, and promote responsible online gaming practices.
• Cabinet Approval:
  • The bill was cleared by the Union cabinet on Tuesday and is set to be tabled in Parliament for legislative approval.
• Penalties and Punishments:
  • The bill proposes strict penalties for involvement in or promotion of illegal online betting applications.
  • There will be punitive measures specifically targeting celebrities and influencers endorsing these platforms.
• GST and Financial Transactions:
  • The Centre is considering a significant 40% GST on online gaming platforms in the revamped regime expected by Diwali.
  • The bill may empower authorities to block or seize financial transactions linked to illegal betting apps, including those processed through banks and other financial services.
• Central Regulator:
  • The Ministry of Electronics and Information Technology (MeitY) may be appointed as the central regulatory authority. MeitY has previously blocked various gambling and betting apps.
• Broad Definitions:
  • The bill is expected to define “online game” as any game involving real money, regardless of whether it is skill- or chance-based.
  • This definition could bring popular card game platforms (Pokerbaazi, Rummy) and fantasy sports and gaming apps (Dream11, MPL, Parimatch) directly under the bill’s regulation.
• Other Provisions:
  • The bill will likely introduce a ban on promoting these platforms via advertisements.
  • It aims to establish strict rules and monitoring systems to prevent fraud, inconsistency, and protect vulnerable groups from gaming addiction.

The move marks the government’s strongest effort yet to bring transparency and accountability to India’s rapidly growing but controversial online gaming and betting industry.