Maharashtra authorities assert a proposed ban on online gaming
In a shocking incident in a constituency, a man's gaming habit led to a tragic chain of events, including the murder of his pregnant wife and two-year-old child, and his subsequent suicide due to debt. This incident has sparked renewed concern over online gaming and its potential dangers, particularly in the context of India's evolving regulatory landscape.
The Indian government has been taking decisive action to curb unauthorized online gambling and betting platforms. Since 2022, over 1,500 illegal gambling and betting websites and apps have been blocked to prevent offshore platforms from evading Indian taxes and laws. This crackdown is driven by strict enforcement under the Information Technology Act and the Integrated Goods and Services Tax (IGST) Act.
Online gaming services in India are subject to a 28% indirect tax (GST), and a 30% tax on net winnings has been introduced on online betting. The Bharatiya Nyaya Sanhita 2023 adds strict punitive measures, including prison terms up to seven years for unauthorized gambling operators.
The government's focus on user safety, data protection, and compliance with KYC norms has led to the blocking of over 1,400 illegal platforms since 2022.
At the state level, Maharashtra and Karnataka are taking active steps to regulate online gaming. While Maharashtra is primarily enforcing national policies, Karnataka is leading the way with a proposed comprehensive regulatory framework. The Karnataka Police (Amendment) Bill 2025 aims to ban all forms of online betting and gambling involving games of chance, except for those regulated under a licensing regime.
The bill also proposes the establishment of a Karnataka Online Gaming and Betting Regulatory Authority (KOGBRA) to differentiate between games of skill and games of chance, issue licenses, and monitor, investigate, and penalize unregistered or illegal platforms.
Maharashtra Chief Minister Devendra Fadnavis has stated that the Centre is considering regulating or banning online gaming platforms due to growing issues related to addiction, online gaming, and crimes linked to gambling. The matter has now reached the Centre's table due to the growing attention being paid to real-money gaming.
In conclusion, India’s regulatory environment for online real-money gaming is increasingly stringent, focusing on blocking unlicensed offshore platforms, imposing heavy taxes, and introducing punitive legislations. Karnataka leads with a proposed regulatory authority specifically for online gaming oversight, and Maharashtra participates primarily through enforcement of national policies. The government’s intentions are to balance innovation in gaming with control over illegal gambling and user safety.
Technology plays a significant role in the current regulation of online gaming and betting in India, as the government uses the Information Technology Act and the Integrated Goods and Services Tax (IGST) Act to block illegal platforms and impose taxes on winnings. Furthermore, the proposed Karnataka Online Gaming and Betting Regulatory Authority (KOGBRA) aims to use technology for differentiating between games of skill and games of chance, issue licenses, and monitor illegal platforms.
