
Government Takes Action Against Illicit Online Gaming and Betting Platforms
Government Cracks Down on Illegal Online Gambling and Betting
300 websites and applications have been blocked by the government in a massive crackdown against illegal online gambling and betting platforms. The targeted sites and apps include online sports betting platforms, online casinos offering slots, roulette, live dealer tables, and betting exchanges functioning like peer-to-peer (P-2-P) betting marketplaces.
Action has also been taken on satta/matka gambling networks and real-money card and casino game apps. This move is in line with the government's commitment to ensuring a safe, responsible, and accountable online gaming ecosystem in the country.
Background The government enacted the Promotion and Regulation of Online Gaming Act, 2025, with the goal of promoting innovation in e-sports and online social games while prohibiting online money games. The Act comprehensively prohibits all forms of online money games, including games of chance, games of skill, or any combination.
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Key Provisions of the Gaming Act
- Prohibits offering online money games or facilitating financial transactions for such online money games, with penalties of up to three years' imprisonment or a fine of up to Rs 1 crore, or both.
- Imposes stricter penalties for subsequent convictions, including a minimum of three years' imprisonment and a fine of Rs 1 crore, which may extend to Rs 2 crore.
- Makes advertising online money games punishable with up to two years' imprisonment or a fine of up to Rs 50 lakh, or both.
- Provides for the recognition and promotion of e-sports and online social games, the establishment of the Online Gaming Authority of India, and a transparent registration mechanism for online games.
Impact A total of around 8,400 websites have been blocked so far, with 4,900 being blocked after the passage of the Online Gaming Act. The government aims to ensure a safe and responsible online gaming ecosystem in the country.
Investor Takeaway
Investors should be cautious of potential regulatory risks in the gaming and betting sector.
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