Govt more likely to tighten guidelines for money-based video games in Online Gaming Bill

Govt more likely to tighten guidelines for money-based video games in Online Gaming Bill

New Delhi, Aug 19, 2025

The draft Bill is more likely to impose extreme restrictions on on-line cash video games or on-line cash gaming service choices, together with financial institution transactions

The authorities could introduce extreme curbs on on-line money-based video games within the forthcoming Online Gaming Bill, 2025, a CNBC-TV18 information report stated on Tuesday.

The draft Bill was reported to impose restrictions on on-line cash video games or on-line cash gaming service choices, a transfer that would impression a number of corporations within the nation.

It can be anticipated to categorise an “online money game” as any recreation — regardless of skill- or chance-based — that includes gamers paying a charge or depositing cash to take part.

Who will likely be affected?

Companies like Dream11, My11Circle, Khelo Fantasy Live, SG11 Fantasy, WinZO, Games24X7 and Junglee Games are more likely to be impacted by the invoice.

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The invoice may prohibit commercials for such video games and block monetary transactions linked to them. Banks and monetary establishments may be barred from processing funds to on-line cash gaming platforms, a transfer that would severely curtail their operations.

Heavy fines within the works

The draft Bill is alleged to additionally suggest strict penalties for violations. Hosting on-line cash video games might lead to imprisonment of as much as three years and fines as much as ₹1 crore, whereas selling such video games could result in two years in jail together with fines of as much as ₹50 lakh, in keeping with the CNBC-TV18 report.

Higher GST bracket and offshore transfer

Meanwhile, actual cash gaming (RMG) corporations – at present within the 28 per cent items and providers tax (GST) bracket – are bracing for the impression of a steep 40 per cent fee, because the Centre considers bringing all ‘sin items’ underneath the upper levy. Several gamers within the business stated that they’d be both compelled to maneuver their enterprise offshore or shut down, an earlier Business Standard report famous. “The exact impact can only be assessed after some preliminary discussions internally,” a high government with a gaming firm informed Business Standard. Other executives added that smaller gaming corporations could must shut operations if a better tax burden is imposed.

Tamil Nadu’s ban on actual cash video games

In 2022, Tamil Nadu handed the Prohibition of Online Gambling and Regulation of Online Games Act, which banned on-line video games of probability equivalent to rummy and poker. The legislation set penalties for operators, advertisers, and gamers concerned in these video games. By 2023, a number of gaming platforms had blocked customers in Tamil Nadu from taking part in real-money contests in compliance with the legislation.

In 2025, the state notified the Tamil Nadu Online Gaming Authority (Real Money Games) Regulations. These guidelines required Aadhaar-based KYC verification, prohibited participation by minors, set spending limits, and restricted logins between 12 a.m. and 5 a.m. In June 2025, the Madras High Court upheld these rules.

Self-imposed code of ethics

In March 2025, business our bodies representing on-line RMG corporations — the All India Gaming Federation (AIGF), the Federation of Indian Fantasy Sports (FIFS), and the E-Gaming Federation (EGF) — collectively introduced the adoption of a “code of ethics”, in keeping with a report in The Hindu newspaper. According to a March 10 assertion, member corporations had vowed to implement measures equivalent to KYC verification, spending limits, and different practices aimed toward making certain person security and selling accountable gaming.

[The Business Standard]