Parliament passes online gaming bill: Key provisions, aims of legislation - what Centre said

NEW DELHI: The Rajya Sabha on Thursday gave its nod to The Promotion and Regulation of Online Gaming Bill amid protests and sloganeering from the Opposition. The legislation, which had already been cleared by the Lok Sabha, was tabled by Union minister Ashwini Vaishnaw for consideration and passing.

Vaishnaw described the bill as a vital move to regulate the rapidly expanding sector, promote innovation, and tackle the dangers linked to money-based gaming.

The bill aims to promote and regulate the online gaming sector, to develop a regulatory framework to oversee the sector, and protect youth and vulnerable populations, from the adverse social, economic, psychological and privacy-related impacts of such games.

What does the Bill cover?
The legislation extends across India and also applies to online money gaming services operated from outside the country but accessible within its territory. It defines three categories of online gaming:

• E-sports
• Online Social Gaming
• Online Money Gaming

Highlighting these aspects, Vaishnaw said, "Online gaming is an important subject which has emerged as an important sector in the digital world. It has 3 segments - the first segment is e-sports, in which people form a team and play, learn coordination, have strategic thinking. Our players have also won many medals. In this bill, e-sports will be promoted, an authority will be created for it and it will get legal recognition. The second is Online Social Games which includes solitaire, chess, soduku, etc. In this bill, online social games will be promoted, encouraged and an authority will be created."

However, the minister cautioned that ‘Online money game’ has emerged as a ‘Public Health Risk.’

What is an e-sport?
The bill describes “e-sport” as an online game that:

• is played as part of multi-sport events
• involves competitive multiplayer formats with predefined rules
• is recognised under the National Sports Governance framework
• has outcomes determined by skill factors such as dexterity, agility, and strategic thinking
• may include participation fees and prize money
• does not involve betting, wagers, or stakes.
  

The government will also take steps to recognise and register e-sports as a legitimate form of competitive sport. This will include guidelines for organising events, training academies, research centres, public campaigns, and integration with wider sporting policies.

Money gaming is a ‘Big Problem,’ says Vaishnaw
Vaishnaw said that online games have resulted in a big problem in the society, “especially in the middle class youth. It gets addicted and the family's savings are spent. It is estimated that 45 crore people are affected by it and more than Rs 20,000 crore has been destroyed in it. WHO has declared it a gaming disorder. Online money gaming has become a public health risk. Problems like psychological disorder, compulsive behaviour, violent behaviour are arising from it. Many families have been destroyed due to it. This has become a huge problem. Its major aspect is money laundering and its effect have also been seen in terror activities. There were efforts to stop this problem but this problem kept on increasing."

The bill prohibits offering or promoting online money games and related services, as well as financial transactions enabling such platforms.

What are online social games?
An “online social game” is defined as a digital game played for recreation or skill development that does not involve stakes, wagers, or monetary gain. Such games may require a subscription or access fee but are strictly for entertainment and are not classified as online money games or e-sports.

What are the penalties for playing online money gaming?
The bill prescribes strict punishments for violations:

• Offering money gaming services: imprisonment up to 3 years, fine up to Rs 1 crore, or both.
• Advertisements promoting money gaming: imprisonment up to 2 years, fine up to Rs 50 lakh, or both.
• Financial institutions aiding transactions: imprisonment up to 3 years, fine up to Rs 1 crore, or both.
  

Repeat offences attract heavier punishments, including a minimum of 3 years and fines ranging from Rs 1 crore to Rs 2 crore. For repeated violations of advertising rules, imprisonment ranges from 2–3 years with fines between Rs 50 lakh and Rs 1 crore.

Additionally, failure to comply with government or authority directions can result in fines up to Rs 10 lakh, suspension or cancellation of registration, and prohibition from offering or promoting such games.