central government
National News: The central government has taken an important step regarding the online gaming sector which is rapidly expanding in the digital world. The Union Cabinet has approved the Online Gaming Regulation and Promotion Act. Its purpose is not only to bind this sector in rules, but also to establish control over online betting and cash transactions.
According to sources, all cash-based online gaming transactions are likely to be banned as soon as the new law comes into force. This means that gaming platforms that take money from users for gaming or betting will no longer get any support from financial institutions or banks.
The new bill includes several key provisions. Advertisements promoting real money games will be completely banned, while e-sports and skill-based gaming will receive support for growth. Strict action will be taken against unregistered or illegal gaming platforms. The Ministry of Electronics and Information Technology (MeitY) will act as the nodal regulator, with authority to block any website or app violating the rules.
As the popularity of online gaming has grown over the years, cases of financial fraud, addiction, and tax evasion have also started to emerge. The industry has come under scrutiny since the government imposed a 28% GST on the sector in October 2023.
A 30% tax has been imposed on gaming winnings from the financial year 2025. Offshore, i.e., foreign, gaming companies have also been brought under the tax net of India. Travel Stories
In December 2023, the Indian Judicial Code was amended to make unauthorized betting a punishable offense. Under this, there is a provision of imprisonment up to seven years and a heavy fine if found guilty. So far, the central government has blocked more than 1,400 illegal websites and apps, which were involved in online betting or gambling.
The Ministry of Education has issued advisories to parents and teachers regarding the growing addiction of minors to online gaming. At the same time, the Ministry of Information and Broadcasting has directed broadcasters to compulsorily broadcast disclaimers related to the financial risks of gaming.
With this bill, the central government hopes that uniform rules and regulations across the country will curb problems like fraud, legal complications, and addiction. Also, control over real money games will prevent illegal activities and financial losses.
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