Lok Sabha Question No. 366 (STARRED), answered on 2025-03-26
Subject: Regulation and Transparency in Online Gaming
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Dr. Amar Singh, Dr. Kirsan Namdeo

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## STARRED QUESTION NO. *366

TO BE ANSWERED ON: 26.03.2025

## REGULATION AND TRANSPARENCY IN ONLINE GAMING

## *366.  DR. AMAR SINGH: DR. KIRSAN NAMDEO:

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

- (a)  the  steps  taken  by  the  Government  to  regulate  financial  transactions  and  user  data protection in online gaming platforms along with the definition of online betting;
- (b) whether the Government has issued any guidelines on preventing fraud and addiction in online gaming and if so, the details thereof and if not, the reasons therefor;
- (c)  the  number  of  cases  of  financial  malpractice  and  data  breaches  reported  in  the  online gaming sector during the last three years; and
- (d) whether there is any law or the Government is planning to introduce any specific law to regulate online betting on games and sports in India and if so, the details thereof?

## ANSWER

MINISTER FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI ASHWINI VAISHNAW)

(a) to (d):    A Statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  THE  REPLY  TO  LOK  SABHA  STARRED QUESTION NO. *366 FOR 26.03.2025 REGARDING REGULATION AND TRANSPARENCY IN ONLINE GAMING

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(a)  to  (d):    The  policies  of  the  Central  Government  are  aimed  at  ensuring  an  open,  safe, trusted  and  accountable  Internet  for  its  users.  To  help  achieve  this  aim,  the  Central Government  has  taken  suitable  steps  to  regulate  financial  transactions  and  user  data protection for digital platforms, including online gaming platforms.

To  bring  certainty  in  the  levy  of  income  tax  in  online  gaming  sector,  Government  vide Finance Act, 2023 has introduced income tax at the rate of thirty per cent on the net winnings in the online games with effect from assessment year 2024-25.

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 IGST Act.

The  Directorate  General  of  GST  Intelligence  Headquarters  is  empowered  as  appropriate government/agency under the Information Technology Act, 2000 ('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.

'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.

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.

With regard to the protection of personal data, under the IT Act, the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011 has been notified prescribing reasonable security practices and procedures on the sensitive personal data or information.

Further, the Digital Personal Data Protection Act, 2023 has been enacted which provides for the legal framework for data protection and mandates Data Fiduciaries to implement security safeguards  as  well  as  robust  technical  and  organisational  measures  while  processing  the digital personal data.

Further,  the  IT  Act  penalises  various  offences  relating  to  computer  resources,  including tampering with computer source documents, dishonestly or fraudulently damaging computer system,  identity  theft,  cheating  by  impersonation,  cyber  terrorism,  securing  unauthorised access to protected system etc.

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).

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.

National Crime Records Bureau (NCRB) under the MHA compiles and publishes statistical data  on  crimes  in  its  publication  'Crime  in  India'.  NCRB  maintains  the  data  provided  by various state governments and central law enforcement agencies.

With regard to addiction to online games, the Ministry of Education has issued an advisory for  parents  &  teachers  on  'Overcoming  online  gaming  downsides'  and  'Children's  safe online gaming'.

In  addition,  the  Ministry  of  Information  and  Broadcasting  has  also  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.

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