Union cabinet clears online gaming bill to regulate betting apps: Report

The Union Cabinet has cleared the Online Gaming Bill to regulate betting applications, according to an ET Now report. The bill is expected to be introduced in the Lok Sabha on Wednesday.

This comes amid a rise in fraud cases in recent months and increased scrutiny of celebrities endorsing betting applications by investigating agencies.

Reports suggest that the Bill also includes penalties and punishments for activities such as promoting online betting apps. Meanwhile, the Centre is expected to impose a 40% Goods and Services Tax (GST) on online gaming under the revamped framework around Diwali.

As per reports, the bill may also bar celebrities, sportspersons and social media influencers from endorsing betting platforms. The government aims to restrict the use of star power in promoting such apps, which have relied heavily on celebrity-led campaigns to attract users.

The bill will also empower enforcement agencies to act against offshore and unregistered operators. The Directorate General of GST Intelligence (DGGI) has so far blocked 357 websites and frozen about Rs 126 crore across 2,400 bank accounts. Nearly 700 offshore entities are under investigation for alleged GST evasion.

According to the ABP reports, the bill seeks to provide clarity for domestic operators, particularly those offering skill-based games. Parliament is expected to debate the definition of skill versus chance and its alignment with state-level gambling laws.

The Finance Act, 2023 introduced a 30% tax on net winnings from online games, applicable from the assessment year 2024–25. Along with this, a 28% GST on online gaming came into effect from October 1, 2023.