'Will enhance profits of mafia': Shashi Tharoor warns Centre against pushing online gaming underground
Shashi Tharoor's remarks came hours after the introduction of the Promotion and Regulation of Online Gaming Bill, 2025, in the Lok Sabha on Wednesday by Electronics and IT Minister Ashwini Vaishnaw.
- Aug 20, 2025,
- Updated Aug 20, 2025 1:42 PM IST
Congress MP Shashi Tharoor has criticised the Centre's new online gaming bill, warning that banning online money games will "merely enhance the profits of the mafia."
"I went on record in 2018 urging the government to legalise, regulate and tax online gaming, rather than drive it underground by banning it, which will merely enhance the profits of the mafia," Tharoor said on Wednesday. "It’s a pity that the government seems to have derived no lessons from the experience of other countries that have considered this issue. The bill could at least have been referred to a committee of Parliament to consider all the pros and cons before rushing it into law."
Tharoor's remarks came hours after the introduction of the Promotion and Regulation of Online Gaming Bill, 2025, in the Lok Sabha on Wednesday by Electronics and IT Minister Ashwini Vaishnaw. The bill aims to regulate online gaming across sectors, including e-sports, educational games, and social games, while strictly prohibiting online money games.
The proposed law empowers the government to appoint a central authority for strategic development, oversight, and regulation of the sector. It prohibits the operation, facilitation, advertisement, or participation in online money gaming where such activity involves cross-border transactions or originates from foreign jurisdictions.
The bill prescribes criminal penalties for violations. Offering online money gaming in contravention of the provisions may attract imprisonment of up to three years or a fine of up to Rs 1 crore, or both. Advertising such services could lead to up to two years in prison, a Rs 50 lakh fine, or both. Fund transactions related to these games may also invite up to three years’ imprisonment or a Rs 1 crore fine.
According to the government, the legislation seeks to protect public health and order, ensure the integrity of financial systems, and prevent the misuse of digital platforms. Vaishnaw earlier told Parliament that the goal is to promote a "safe, trusted and accountable internet."
While banning online money games, the bill calls for the promotion of eSports and online social gaming. The government argues that formal recognition of eSports can help India join the global competitive gaming ecosystem, foster innovation, and encourage startups.
To bring tax clarity, the Finance Act, 2023, introduced a 30% income tax on net winnings from online games. From October 1, 2023, the government also applied a 28% GST on online gaming. Offshore providers are now regulated under the IGST Act.
Congress MP Shashi Tharoor has criticised the Centre's new online gaming bill, warning that banning online money games will "merely enhance the profits of the mafia."
"I went on record in 2018 urging the government to legalise, regulate and tax online gaming, rather than drive it underground by banning it, which will merely enhance the profits of the mafia," Tharoor said on Wednesday. "It’s a pity that the government seems to have derived no lessons from the experience of other countries that have considered this issue. The bill could at least have been referred to a committee of Parliament to consider all the pros and cons before rushing it into law."
Tharoor's remarks came hours after the introduction of the Promotion and Regulation of Online Gaming Bill, 2025, in the Lok Sabha on Wednesday by Electronics and IT Minister Ashwini Vaishnaw. The bill aims to regulate online gaming across sectors, including e-sports, educational games, and social games, while strictly prohibiting online money games.
The proposed law empowers the government to appoint a central authority for strategic development, oversight, and regulation of the sector. It prohibits the operation, facilitation, advertisement, or participation in online money gaming where such activity involves cross-border transactions or originates from foreign jurisdictions.
The bill prescribes criminal penalties for violations. Offering online money gaming in contravention of the provisions may attract imprisonment of up to three years or a fine of up to Rs 1 crore, or both. Advertising such services could lead to up to two years in prison, a Rs 50 lakh fine, or both. Fund transactions related to these games may also invite up to three years’ imprisonment or a Rs 1 crore fine.
According to the government, the legislation seeks to protect public health and order, ensure the integrity of financial systems, and prevent the misuse of digital platforms. Vaishnaw earlier told Parliament that the goal is to promote a "safe, trusted and accountable internet."
While banning online money games, the bill calls for the promotion of eSports and online social gaming. The government argues that formal recognition of eSports can help India join the global competitive gaming ecosystem, foster innovation, and encourage startups.
To bring tax clarity, the Finance Act, 2023, introduced a 30% income tax on net winnings from online games. From October 1, 2023, the government also applied a 28% GST on online gaming. Offshore providers are now regulated under the IGST Act.