India has outlawed online gambling following the passage of a new law that targets betting platforms and money-based games, amid rising concerns over addiction, fraud, and social distress.
The Promotion and Regulation of Online Gaming Bill, passed by both houses of parliament, criminalises the offering, promotion, and financing of gambling apps. Offenders risk up to five years in prison.
Government figures revealed that about 450 million Indians nearly a third of the population, lose a combined $2.3 billion annually on gambling platforms, including card games, poker, and fantasy sports.
The ban also affects India’s hugely popular homegrown fantasy cricket apps.
“This legislation is designed to curb addiction, financial ruin and social distress caused by predatory gaming platforms that thrive on misleading promises of quick wealth,” a government statement said.
While India has one of the world’s largest gaming markets, the law creates exceptions for e-sports and educational games, which authorities say will be promoted under the country’s digital economy drive.
Prime Minister Narendra Modi said the new law will “encourage e-sports and online social games” while “at the same time, it will save our society from the harmful effects of online money games.”
Industry players had pushed for regulation and taxation rather than a blanket ban, warning it could push gamblers towards unregulated offshore platforms. However, lawmakers backing the bill insisted that the social costs outweighed potential economic benefits.
Officials said the proliferation of gambling apps had led to cases of financial hardship, addiction, and even suicide, while also being linked to fraud, money laundering, and terrorism financing.
Ashwini Vaishnaw, minister of technology, explained that the law distinguishes between games played for money and those designed for recreation.
“It encourages e-sports, which are organised competitive video games, and promotes safe online social and educational games”, a government briefing note read.
“It separates constructive digital recreation from betting, gambling and fantasy money games that exploit users with false promises of profit.”
