Cabinet okays online gaming Bill; real money platforms may face ban

The Union Cabinet has approved a Bill related to promotion and regulation of online gaming, and the government is likely to bar platforms offering any online money gaming service, a source said on Tuesday.

The Bill is likely to be tabled in Parliament on Wednesday, the source added.

“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 source said on condition of anonymity.

The Bill has taken into account significant mental health issues among users of online games, particularly those involving monetary incentives. Sources said that the decision has come following observations from the government that online money gaming provides means to facilitate money laundering, fraudulent financial transactions, and cyber crime, among others.

As per the present legal framework in place, states and Union Territories are primarily responsible for the prevention, detection, investigation and prosecution of crimes, including action on illegal betting and gambling. Several real money gaming firms masquerading themselves as “game of skills” to differentiate themselves from betting or gambling platforms and avoid ban.

In June, the Madras High Court had dismissed a petition filed by real money gaming platforms Play Games 24X7, Head Digital Works, Junglee Games and others challenging the ban imposed by the Tamil Nadu government.

The court rejected arguments of the real money gaming firms challenging jurisdiction of the state to regulate digital platforms as well as their argument to differentiate “games of chance” from the “game of skills”.

The Tamil Nadu government, citing an expert committee report, said that online games involving real money have posed serious mental and physical health risks to the citizens, including suicides by some, in the state.

The court upheld that the state has full competence to pass legislation to govern matters affecting public health and rejected arguments challenging its power to ban game of skills involving real money.