India Tightens Online Gaming Rules to Ensure Transparency and User Safety

Union Minister Ashwini Vaishnaw in a written reply in the Lok Sabha said that the Central Government has introduced stringent regulations for online gaming to ensure a secure, transparent, and accountable digital ecosystem. These measures focus on financial transactions, user data protection, and legal enforcement to curb illegal betting and gambling activities.

To regulate taxation in the online gaming sector, the government introduced a 30% income tax on net winnings through the Finance Act, 2023, applicable from the 2024-25 assessment year. Additionally, a 28% Goods and Services Tax (GST) was imposed on online gaming from October 1, 2023. Online gaming providers, including offshore platforms, must register under the Integrated Goods and Services Tax (IGST) Act, 2017, ensuring compliance with Indian tax laws.

To further strengthen oversight, the Directorate General of GST Intelligence Headquarters has been authorized under the Information Technology (IT) Act, 2000, and IGST Act to block unregistered and illegal online gaming platforms, including offshore websites.

Since “betting and gambling” fall under State jurisdiction, each State Legislature has the authority to define related offenses under Article 246 and Article 162 of the Indian Constitution. Law enforcement agencies in States and Union Territories (UTs) are responsible for investigating and prosecuting illegal online betting operations. To support these efforts, the Central Government provides financial aid and training programs for law enforcement agencies under various schemes.

The Bharatiya Nyaya Sanhita, 2023 (BNS), effective from July 1, 2024, imposes strict penalties for unauthorized betting and gambling, with imprisonment ranging from one to seven years along with fines.

To protect user data, the Digital Personal Data Protection Act, 2023, mandates gaming platforms to implement strict security measures. Under the IT Act, 2000, rules exist to prevent data breaches, cyber fraud, identity theft, and unauthorized access to sensitive information. The law also empowers the government to block websites or content that threaten national security, public order, or sovereignty under the Information Technology (Procedure and Safeguards for Blocking for Access of Information for Public) Rules, 2009.

As part of enforcement efforts, the Ministry of Electronics and Information Technology (MeitY) has issued 1,410 blocking orders against illegal online betting, gambling, and gaming websites (including mobile apps) between 2022 and February 2025.

The Ministry of Home Affairs (MHA) has also taken steps to combat cybercrimes related to online gaming. The Indian Cyber Crime Coordination Centre (I4C) provides a framework for law enforcement agencies to tackle cybercrimes effectively. Additionally, the National Cyber Crime Reporting Portal (https://cybercrime.gov.in) allows users to report financial fraud and other cyber offenses. A toll-free helpline (1930) has also been set up for quick complaint registration.

To address concerns about gaming addiction, the Ministry of Education has issued advisories for parents and teachers on ensuring children’s safe gaming habits. The Ministry of Information and Broadcasting has also directed private television channels to follow the Advertising Standards Council of India (ASCI) guidelines, requiring gaming advertisements to include disclaimers about financial risks and addiction.

The Central Government continues to enhance regulations to create a safer, accountable, and well-regulated online gaming environment.

Source: PIB