India’s parliament has passed sweeping legislation banning online gambling, following government data showing that 450 million citizens collectively lose about $2.3 billion each year on gaming apps.
The new law, titled the Promotion and Regulation of Online Gaming Bill, criminalises the offering, promotion, and financing of money-based online games such as poker, card games, and fantasy sports, including India’s hugely popular fantasy cricket platforms. Offenders face penalties of up to five years in prison.
“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,” the government said in a statement on Thursday after the bill cleared both houses of parliament.
While banning gambling-related platforms, the law makes exceptions for e-sports and educational games, which the government says it will encourage as part of India’s growing digital economy. Prime Minister Narendra Modi said the move would “promote e-sports and online social games” while protecting society from “the harmful effects of online money games.”
The legislation comes amid rising concerns over the social costs of online gambling, which officials say has been linked to financial distress, addiction, suicide, fraud, money laundering, and even terrorism financing. Technology Minister Ashwini Vaishnaw noted that the law draws a clear line between online “social” games and those played for money.
Industry groups had lobbied for regulation and taxation instead of a blanket ban, warning it could drive users to offshore operators. However, supporters of the bill argued that the risks to public welfare outweighed economic concerns.
