From cabinet clearance to President’s assent: India gets a gaming law in 96 hours

The Promotion and Regulation of Online Gaming Law received President's assent on August 22

India has enacted a new online gaming law in just four days, fast-tracking legislation from cabinet approval to presidential assent in what may be one of the swiftest policy moves in recent parliamentary history.

The bill, which brings online gaming under a central regulatory framework, was passed in both houses of Parliament with minimal debate.

The proposed legislation received Union Cabinet approval on August 19, sailed through the Lok Sabha on August 20, and was passed by the Rajya Sabha on August 21.

By August 22 evening, it had secured the President’s assent, officially becoming law.

The law grants the central government sweeping powers to ban online real-money games, while prescribing penal action against operators, advertisers, and even financial intermediaries who enable such platforms.

Offences have been classified as cognisable and non-bailable, carrying jail terms of up to three years and fines of up to Rs 1 crore.

The rapid passage reflects the government’s growing urgency to rein in an industry estimated to be worth over Rs 23,000 crore in annual revenues, with 450 million Indians engaging in some form of online gaming.

Minister for Electronics and Information Technology Ashwini Vaishnaw has repeatedly argued that the social costs of real money gaming, which includes addiction, indebtedness, suicides etc, outweighed the sector's economic contributions.

The law also creates a new Authority on Online Gaming, tasked with registering games, handling consumer complaints and so on.

However, while the offering of money games is banned, e-sports and online social games are to be formally recognised and promoted under government-backed schemes.

While a few Opposition leaders have criticised the government for rushing the Bill through without consultation, Vaishnaw maintains that there is general consensus across political lines about the pitfalls of online money gaming.

"There has been massive positive outpour from citizens in favour of this Bill. Members of Parliament across political lines have said that this has been a very good move," he told Moneycontrol in an exclusive interview.

Industry bodies have also sounded alarm. The All India Gaming Federation (AIGF), the E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS) warned that the law would "strike a death knell" for the legitimate skill-gaming industry, jeopardising over 200,000 jobs and billions in investment. They urged the Home Minister to intervene.

In the coming months, the test will be to see how the law is implemented. Enforcement agencies have been empowered to search and arrest without warrant, extending even to digital spaces.

Industry, civil bodies will be keenly watching as to how these powers are exercised, and if it indeed puts a knell on the online money gaming system, while promoting others kinds of games!