Lok Sabha Passes Bill to Regulate Online Gaming, Ban Money Games

The Lok Sabha on Wednesday cleared the ‘Promotion and Regulation of Online Gaming Bill’, marking India’s first comprehensive framework for the fast-growing digital gaming sector.

Key Provisions of the Bill

  • Three categories of online gaming:
    • E-sports – granted legal recognition as competitive sport.
    • Online social games – like Chess, Solitaire, Sudoku (without money stakes), to be promoted for family/friendly interaction.
    • Online money games – blanket ban imposed.
  • Ban on money games:
    • Covers games of skill, chance, or both if played for stakes.
    • Applies to offering, operating, advertising, facilitating, promoting or financing such games.
    • Players will not be punished; liability lies with service providers and promoters.

Penalties

  • Running money games: Up to 3 years’ imprisonment and/or ₹1 crore fine.
  • Advertising them: Up to 2 years in jail and/or ₹50 lakh fine.
  • Repeat offences: Up to 5 years in jail and ₹2 crore fine.
  • All offences will be cognisable and non-bailable.

Government’s Stand

Union IT Minister Ashwini Vaishnaw:

  • “E-sports are rapidly gaining prominence and will now receive legal recognition.”
  • “Online money games have become a major societal concern due to addiction, financial losses, suicides, opaque algorithms, and even terror financing links.”
  • The Ministry of Youth Affairs and Sports will frame policy for promoting e-sports.

Political Reactions

  • Despite slogans and protests from Opposition benches, the Bill was passed by a voice vote.
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