Lok Sabha Question No. 5200 (UNSTARRED), answered on 2025-04-02
Subject: Impact of Online Gambling
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Dr. M P Abdussamad Samadani

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION NO. 5200

TO BE ANSWERED ON: 02.04.2025

## IMPACT OF ONLINE GAMBLING

## 5200.  DR. M P ABDUSSAMAD SAMADANI:

Will  the  Minister  of  ELECTRONICS  AND  INFORMATION  TECHNOLOGY  be  pleased  to state:

- (a) whether the Government is aware of the rising trend of online gambling and its increasing negative impact on youth across the country;
- (b)  if  so,  the  details  of  studies  or  reports,  if  any,  conducted  to  assess  the  social  and  financial consequences of online gambling particularly among young individuals;
- (c)  whether  the  Government  has  taken  any  measures  to  regulate  or  curb  online  gambling platforms to protect youth from addiction and financial exploitation; and
- (d) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI JITIN PRASADA)

(a) to (d):'Betting and gambling' is a State subject under entry 34 of the List II (State List) of the Seventh Schedule of the Indian Constitution and State legislations define betting and gambling related  offences.  Therefore,  as  per  the  provisions  of  article  246  read  with  article  162  of  the Constitution,  State  Legislatures  have  power  to  legislate  on  matters  related  to  betting  and gambling.

Further,  'Police'  and  'Public  Order'  are  State  subjects  as  per  the  Seventh  Schedule  of  the Constitution  of  India.  The  States/UTs  are  primarily  responsible  for  the  prevention,  detection, investigation  and  prosecution  of  crimes  including  for  action  on  illegal  betting  and  gambling through their Law Enforcement Agencies (LEAs).

Accordingly, State police departments take preventive and penal action as per law in respect of illegal  betting  and  gambling.  The  Central  Government  supplements  the  initiatives  of  the States/UTs  through  advisories  and  financial  assistance  under  various  schemes  for  capacity building of their LEAs.

The  policies  of  the  Central  Government  are  aimed  at  ensuring  anopen,  safe,  trusted  and accountable  Internet  for  its  users.To  help  achieve  this  aim,  the  Central  Government  has  taken suitable steps to counter the risks posed by online gaming, betting & gambling operations and the associated potential harms &  illegal activities like addiction, financial losses, financial frauds,money laundering and other unlawful activities, etc.

To protect users in  India  and  the  Indian  internet  at  large  from  the  emerging  harms  emanating from  the  misuse  of  technologies  and  to  ensure  accountability  towards  law  of  the  land,  the Ministry  of  Electronics  and  Information  Technology  ('MeitY')  regularly  engages  with  and receives inputs from the industry for promoting ethical use of technologies.

The Central Governmentafter extensive consultations with relevant stakeholdersnotifiedamendments  to  the  Information  Technology  (Intermediary  Guidelines  and Digital Media Ethics Code) Rules, 2021 ('IT Rules, 2021')under the Information Technology Act, 2000 ('IT Act')to address various socio-economic concerns emanating from online games.

MeitY also reminds the intermediaries from time-to-time to ensure compliance with their duediligence  requirements  under  the  IT  Act  and  the  IT  Rules,  2021  to  combat  the  unlawful activities/ information including betting & gambling made available on their platforms.

The IT Rules, 2021casts specific obligations on intermediaries, including social media intermediariesand  online  gaming  intermediaries.  The  intermediaries  are  required  not  to  host, store or publish any information violative of any law for the time being in force. They are also obligated to ensure their accountability that includes their expeditious action towards removal of the unlawful information categorised under the IT Rules, 2021 against the Government's order or on the basis of grievances received against any unlawful information. Such unlawful information comprises  any  information  that,  among  other  things,  is  harmful  to  child  or  that  is  relating  or encouraging money laundering or gambling, or that is misinformation, patently false information, untrue or misleadinginnature, or that threatens the unity, integrity, defence, security or sovereignty of India, public order, or that violates any law for the time being in force.

Section 112(1) of the Bharatiya Nyaya Sanhita, 2023 ('BNS') which came into effect from July 1, 2024, punishes unauthorised betting and gambling with minimum 1 year of imprisonment that may extend to 7 years and with fine.

In  addition,  Government  has  introduced  GST  at  the  rate  of  28%  in  online  gaming  from  1st October, 2023. The supplier of online money gaming shall obtain a single registration under the Simplified Registration Scheme referred to in the Integrated Good and Services Tax Act, 2017 ('IGST Act').

The suppliers of offshore online money gaming are also being regulated under the IGST Act.

The  Directorate  General of  GST  Intelligence  Headquarters  ('DGGI')  is  empowered  as appropriate government/agency under the IT Act and the IGST Act to direct intermediaries to block  unregistered  online  money  gaming  platforms  including  offshore  online  money  gaming platforms violating the IGST Act.

Further, the IT Act has provisions to issue blocking orders to intermediaries for blocking access to specific information/ link in the interest of sovereignty and integrity, defence of India, security of  the  State,  friendly  relations  with  foreign  States  or  public  order  or  for  preventing  to  the incitement  to  the  commission  of  any  cognizable  offence  relating  to  above  following  the  due process as envisaged in the Information Technology (Procedure and Safeguards for Blocking for Access of Information for Public) Rules, 2009.

MeitY has issued 1410 blocking directions related to online betting/gambling/gaming websites (including mobile applications) between the year 2022- 25 (till February, 2025).

DGGI  is also investigating offshore entities involved in the supply of online  money gaming/betting/gambling are under DGGI's scanner. So far, 357 websites/URLs of illegal/noncompliant  offshore  online  money  gaming  platforms  have  been  blocked  by  the  DGGI,  in coordinationwith  MeitY,  under  the  IT  Act.In  two  other  separate  cases,  DGGI  has  collectively blocked  nearly2,400  bank  accounts  and  frozen  nearly  Rs.  126  crore.DGGI  advised  public  to remain cautious and not engage withoffshore online money gaming platforms.

The Ministry of Home Affairs ('MHA') has established the Indian Cyber Crime Coordination Centre ('I4C') to provide a framework and eco-system for LEAs to deal with cyber-crimes in a comprehensive and coordinated manner.

MHA has also launched the National Cyber Crime Reporting Portal (https://cybercrime.gov.in) to  enable  the  public  to  report  all  types  of  cyber-crimes  including  cyber  financial  frauds. Cybercrime  incidents  reported  on  this  portal  are  routed  to  the  respective  State/UT  law enforcement  agency  for  further  handling  as  per  the  provisions  of  law.  The  portal  has  distinct mechanisms for registering complaints related to financial frauds.

A tollfree Helpline number '1930' has been operationalised to get assistance in lodging online complaints.

In  addition,  the  Ministry  of  Information  and  Broadcasting  ('MIB')  has  issued  advisory  to  all private satellite television channels on 'Advertisements on Online Games, Fantasy Sports, etc.', advising all broadcasters that the guidelines issued by the Advertising Standards Council of India (ASCI) be complied with and that the advertisements broadcast on television adhere to the same. The guidelines includes that every gaming advertisement must carry the disclaimer in line with ASCI code in print/static media as well as audio/video forms indicating that this game involves an element of financial risk and may be addictive. MIB has also issued advisories prohibiting advertisements (including surrogate) of betting and gambling platforms.

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