Justifying the Centre's rationale for bringing in a bill that proposes to ban real-money gaming, Union IT Minister Ashwini Vaishnaw on August 19 said that in certain cases, such platforms have been used for money laundering, financing terrorism, and as messaging channels by terrorist organisations.
In the Statement of Objections and Reasons, accompanying the "Promotion and Regulation of Online Gaming Bill, 2025", Vaishnaw said, "In certain cases, these platforms have been linked to illegal activities including money-laundering, financial fraud, the financing of terrorism, and use as messaging platform for terrorist and terrorist organisations, thereby affecting the security and sovereignty of the State."
Additionally the IT minister also said that "a plethora" of online money gaming service providers that operate from offshore locations circumvent State-specific regulations, evade taxation and has also raised challenges for law enforcement officials because of cross-border concerns.
The Bill, cleared by the Union Cabinet on August 19 and set to be introduced in the Lok Sabha on August 20, proposes strict penalties for offering and promoting online money games.
While it spares players from criminal liability, it seeks to criminalise platforms, advertisers, and financial facilitators, sources told Moneycontrol on August 19.
Vaishnaw also stated that the government’s new bill is necessary to address the “grave social, economic, and psychological consequences” arising from such games.
“These platforms often promote compulsive and addictive behaviour, resulting in financial ruin, mental health disorders, and increasing incidents of fraud and exploitation,” Vaishnaw said.
He added that “a significant number of young persons and economically vulnerable individuals have been adversely impacted by the seamless availability of these games.”
Meanwhile, the gaming industry has written to Home Minister Amit Shah warning that such a ban would devastate a fast-growing industry, kill over 200,000 jobs and drive users to unregulated offshore platforms.
The joint letter dated August 19 by three leading industry bodies - the All India Gaming Federation (AIGF), the E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS) said the proposed legislation, if enacted, would “strike a death knell” for the legitimate, regulated online gaming industry in India.
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