Online Gaming Bill Passed in Rajya Sabha: Centre Outlines Its Benefits

The Rajya Sabha on Thursday approved The Promotion and Regulation of Online Gaming Bill, amid protests and sloganeering from the Opposition. The legislation, which had earlier been cleared by the Lok Sabha, was tabled by Union Minister of Electronics and Information Technology Ashwini Vaishnaw for consideration and passage.

Vaishnaw made brief remarks before the Bill’s passage, emphasizing its aim to regulate the rapidly expanding online gaming sector, promote innovation, and address risks associated with money-based gaming. The Centre estimates that around 45 crore people lose nearly ₹20,000 crore annually in online real money gaming.

The online gaming industry has expressed strong concerns, warning that banning all real money games could threaten over two lakh jobs, shut down 400 companies, and adversely impact India’s digital innovation. The sector, valued at ₹2 lakh crore with ₹31,000 crore in revenue and ₹20,000 crore in taxes, could face a “death knell” if the law is enforced without adequate safeguards.

The Bill seeks to promote and regulate the online gaming sector by establishing a comprehensive regulatory framework, protecting youth and vulnerable populations from the social, economic, psychological, and privacy-related harms associated with online gaming. It applies across India and extends to online money gaming services operated from outside the country but accessible within Indian territory.

The legislation categorizes online gaming into three segments: E-sports, Online Social Gaming, and Online Money Gaming. Vaishnaw highlighted the benefits of the first two segments:

"Online gaming is an important subject which has emerged as an important sector in the digital world. It has 3 segments - the first segment is e-sports, in which people form a team and play, learn coordination, have strategic thinking. Our players have also won many medals. In this bill, e-sports will be promoted, an authority will be created for it and it will get legal recognition. The second is Online Social Games which includes solitaire, chess, soduku, etc. In this bill, online social games will be promoted, encouraged and an authority will be created."

However, the minister cautioned that ‘Online money game’ has emerged as a ‘Public Health Risk.’

Once the law is enacted, offering or facilitating online money games could lead to up to three years of imprisonment and/or a fine of up to Rs 1 crore.

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