Online Gaming Bill gets cabinet nod, sets penalties for gambling through betting apps

The Union Cabinet on Tuesday cleared the Online Gaming Bill, setting the stage for the first legal framework to regulate betting apps and impose strict checks on digital gambling, sources said.

According to officials, the Bill is designed to bring online gaming platforms under formal regulation while introducing penalties for gambling conducted through digital applications.

The approval marks a significant policy step toward monitoring the fast-growing online gaming industry and addressing concerns over unregulated betting apps.

The government has tightened its oversight of the sector in recent years. Since October 2023, online gaming has been subject to a 28% GST, and winnings from games are taxed at 30% beginning with the 2024–25 financial year. Offshore gaming platforms have also been brought into the tax net, and authorities can block unregistered or illegal sites.

Last year, new criminal provisions under the Bharatiya Nyaya Sanhita came into effect, making unauthorized betting punishable by up to seven years in jail and fines. Despite this, states retain primary authority to act against illegal betting and gambling, since “betting and gambling” are part of the State List in the Constitution.

Between 2022 and February 2025, the government blocked more than 1,400 betting and gambling websites and apps. To address addiction, the Education Ministry has issued advisories to parents and teachers, while the Information and Broadcasting Ministry has instructed TV channels to ensure gaming advertisements include disclaimers about financial risks and potential addiction.