Context
- Sector: Online real money gaming (RMG), including fantasy sports (Dream11), card games (PokerBaazi), rummy, poker, etc.
- Size: Multi-billion-dollar industry with rapid growth in India.
- Recent move: Union Cabinet (19 Aug 2025) approved Promotion and Regulation of Online Gaming Bill, 2025 → to be tabled in Parliament.
- Significance: Sudden, no draft Bill was made public beforehand (contrast with Digital Personal Data Protection Act, 2023).
Relevance : GS 2(Governance , Social Issues)
Key Provisions of the Bill
- Definition of online money gaming:
- Any game where players deposit money or stakes in expectation of winning.
- Returns may be monetary or involve “other enrichment.”
- Prohibition:
- Broad ban on all online money gaming (RMGs) across categories.
- Covers fantasy sports, poker, rummy, and similar stake-based platforms.
- Scope: National-level framework (important, since states had varied regulations earlier).
Background Issues
- Industry pushback:
- RMG platforms and industry associations have strong lobbying networks with government.
- Opposed higher GST on RMG deposits (recent Council decision).
- Legal battles:
- Firms obtained stays on bans at the state level (e.g., Karnataka).
- Industry has argued for distinction between games of skill vs. games of chance.
- Government concern:
- Addiction, financial losses, youth exploitation, and money laundering risk.
- Consumer protection and responsible gaming.
Implications
Positive
- Protects vulnerable users from financial exploitation.
- Curtails gambling disguised as “games of skill.”
- Uniformity across India, reducing state-level inconsistencies.
- Potentially reduces litigation over regulatory gaps.
Negative / Challenges
- Huge economic impact:
- RMG industry valued at several billion dollars; ban may hit jobs, revenues, start-up ecosystem.
- Fantasy sports industry (with IPL tie-ins) likely to be severely impacted.
- Loss of foreign and domestic investment.
- Possibility of grey markets or underground illegal betting networks.
- Legal challenges inevitable (fundamental right to trade, Article 19(1)(g)).
Comparative / Global Context
- China: Harsh restrictions on online gaming for minors.
- US: State-wise regulation; some allow online poker, fantasy leagues.
- EU: Regulatory frameworks emphasizing responsible gaming, licensing, taxation.
- India’s move closer to prohibition model rather than regulation.
