The Ministry of Electronics & Information Technology (MeitY) on March 26th 2025 has introduced new measures to regulate the online gaming industry, aiming to create a safer and more transparent environment for users. These new measures are designed to protect users from risks like illegal gambling, data theft, and online addiction, while ensuring that the industry remains accountable and transparent.
Crackdown on Illegal Online Gambling and Betting
Between 2022 and February 2025, the Ministry of Electronics & Information Technology (MeitY) has issued 1410 blocking directions to tackle illegal online gambling and betting websites, including mobile apps. This action is part of the government’s larger push to eliminate unregulated platforms that pose a risk to users and violate the law.
Tax Reforms for Online Gaming
To bring more clarity to the financial side of online gaming, the government has introduced a 30% income tax on net winnings from online games starting from 2024-25. On top of that, a 28% Goods and Services Tax (GST) was levied on online gaming from October 2023. This ensures that the industry contributes fairly to the economy while maintaining transparency.
New Regulations for Online Gaming Platforms
Online gaming platforms, including those based outside India, must now comply with the Integrated Goods and Services Tax (IGST) Act, 2017, which requires them to register under a simplified registration scheme. This regulation will help keep track of offshore gaming platforms and ensure they follow the same rules as Indian-based platforms. If these platforms fail to comply, the government can block them.
State Governments’ Role in Regulating Betting and Gambling
While the central government has set national standards, state governments still hold primary responsibility for regulating betting and gambling, as these are state matters under the Indian Constitution. Local law enforcement agencies (LEAs) handle prevention, investigation, and prosecution of related crimes. The central government supports state initiatives with advisories and funding to strengthen local law enforcement.
Stricter Legal Measures for Illegal Gambling
Under the Bharatiya Nyaya Sanhita, 2023 (BNS), which takes effect on July 1, 2024, unauthorized betting and gambling will be punishable with up to seven years in prison and hefty fines. This legal update strengthens the framework for combating illegal gambling across the country.
Protecting Personal Data in Online Gaming
As online gaming platforms handle a lot of personal data, the government has implemented stricter data protection laws. The Digital Personal Data Protection Act, 2023 mandates platforms to implement robust security measures to protect user information. This aims to safeguard sensitive personal data and ensure privacy for users.
Fighting Cybercrimes and Raising Awareness
The Ministry of Home Affairs has set up the Indian Cyber Crime Coordination Centre (I4C) to help law enforcement agencies better tackle cybercrimes, including those related to online gambling. The National Cyber Crime Reporting Portal makes it easier for the public to report cybercrimes, including online financial frauds linked to gambling websites.
To prevent addiction, the Ministry of Education has released guidelines for parents and teachers on managing the downsides of online gaming. Furthermore, the Ministry of Information and Broadcasting has urged television broadcasters to follow the Advertising Standards Council of India (ASCI) guidelines when advertising online games. These ads must include disclaimers that warn of the financial risks and addictive nature of the games.
Conclusion
The government’s enhanced regulations for online gaming are a major step forward in protecting users and ensuring a fair and accountable digital environment. From cracking down on illegal gambling sites to enforcing stricter data protection laws, these measures aim to make the online gaming sector safer and more transparent for everyone involved.
For updates and to report cybercrimes, visit the National Cyber Crime Reporting Portal at cybercrime.gov.in
