Government Enhances Online Gaming Regulations for Transparency and User Safety

Notification/Circular No.: 2115414

Document Date: March 26, 2025

Applicable Act/Rule: Information Technology Act, 2000; Finance Act, 2023; Goods and Services Tax Act, 2017; Digital Personal Data Protection, 2023

The Central Government has implemented a series of measures to regulate the online gaming sector, aiming to ensure transparency, user safety, and financial compliance. Between 2022 and 2025, the Ministry of Electronics and Information Technology (MeitY) issued 1,410 blocking directions against online betting, gambling, and gaming websites found violating Indian laws.

To address financial aspects, the Finance Act, 2023, introduced a 30% income tax on net winnings from online games, effective from the assessment year 2024-25. Additionally, a 28% Goods and Services Tax (GST) on online gaming was implemented starting October 1, 2023. Suppliers of online money gaming are required to obtain a single registration under the Simplified Registration Scheme as per the Integrated Goods and Services Tax Act, 2017. ​

The Directorate General of GST Intelligence (DGGI) has been empowered under the Information Technology Act, 2000, and the IGST Act to direct intermediaries to block unregistered online money gaming platforms, including offshore platforms violating the IGST Act. In a coordinated effort, the DGGI, along with MeitY, blocked 357 websites of non-compliant offshore gaming operators and attached nearly 2,000 bank accounts, amounting to ₹4 crore.

Recognizing that “Betting and gambling” fall under the State List (Entry 34 of List II) of the Seventh Schedule of the Indian Constitution, state legislatures have the authority to define and legislate on related offences. Consequently, state police departments are primarily responsible for the prevention, detection, investigation, and prosecution of crimes, including illegal betting and gambling, through their law enforcement agencies. ​

To combat unauthorized betting and gambling, Section 112 of the Bharatiya Nyaya Sanhita, 2021, effective from July 1, 2024, prescribes imprisonment ranging from one to seven years and a fine for those found guilty. ​

Regarding data protection, the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011, mandate reasonable security practices for handling sensitive personal data. Furthermore, the Digital Personal Data Protection Act, 2023, provides a legal framework for data protection, requiring data fiduciaries to implement appropriate technical and organizational measures while processing digital personal data. ​

The IT Act penalizes various offences related to computers, including tampering with documents, dishonestly or fraudulently damaging computer systems, identity theft, cheating by impersonation, cyber terrorism, and securing unauthorized access to protected systems. It also empowers the government to issue blocking orders to intermediaries in the interest of sovereignty and integrity, defense of India, security of the state, friendly relations with foreign states, or public order, following due process as envisaged in the Information Technology (Procedure and Safeguards for Blocking for Access of Information for Public) Rules, 2009. ​

To assist citizens, the Ministry of Home Affairs has established the Indian Cyber Crime Coordination Centre (I4C) to provide a framework for law enforcement agencies to deal with cyber crimes in a coordinated manner. The National Cyber Crime Reporting Portal (https://cybercrime.gov.in) enables the public to report all types of cybercrimes, including cyber financial frauds, with incidents routed to the respective State/UT law enforcement agency for further action as per the provisions of law. ​

Addressing concerns about addiction to online games, the Ministry of Education has issued advisories for parents and teachers on “Overcoming Addiction to Online Gaming” and guidelines for children’s safe online gaming. Additionally, the Ministry of Information and Broadcasting has advised private satellite television channels on advertisements for online games and fantasy sports, recommending compliance with guidelines issued by the Advertising Standards Council of India (ASCI). These guidelines include disclaimers indicating that the game involves financial risk and may be addictive. ​

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