Paper: GS – II, Subject: Polity, Topic: Legal issues, Issue: Issues regarding the recent online gaming ban.
Context:
The Government has decided to outlaw online money gaming where players stake real money. It raises debate on whether regulation is a better approach than an outright ban.
Key Highlights:
The Promotion and Regulation of Online Gaming Bill:
- Passed by Lok Sabha (2025) it seeks to ban addictive money gaming while plugging regulatory loopholes
- Defines online money games: where money changes hands (excluding e-sports & social games with entry fees).
Government’s Rationale for Ban:
Issues with a Blanket Ban:
Alternative Approach: Regulation:
- Strict Age-Gating: Restrict access for underage players.
- ‘Sin’ Taxation: High taxes on money-gaming platforms.
- Exemplary Penalties: For violations, data misuse, or illegal transfers.
- Advertising Restrictions: Prevent promotion of addictive betting-style apps.
- Central Regulatory Framework: To ensure uniformity across states.
- Data Protection & Financial Oversight: Integrate with Digital Personal Data Protection Act & anti-money laundering laws.
Way Forward:
- Focus on responsible regulation, not prohibition.
- Ensure taxation and monitoring instead of pushing activity underground.
- Protect youth & vulnerable groups through targeted safeguards.
- Build a uniform national framework while respecting federalism.
- Strike a balance between individual liberty, market innovation, and social protection.
Conclusion:
Indian gaming industry is expected to reach$8.6 billion by 2027 (KPMG report). There is need to regulate online gaming instead of banning it (e.g., UK, US). SC also in State of Andhra Pradesh vs K. Satyanarayana (1968) held that games of skill are not gambling.
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