The Indian government is considering the introduction of a central law to regulate online betting, gambling, gaming, and lotteries. According to sources, the Union Ministry of Home Affairs (MHA) recently discussed the matter in a high-level meeting attended by officials from various agencies, including the Intelligence Bureau.
Government’s Focus on New Regulations
The Indian Cyber Crime Coordination Centre (I4C) has been tasked with preparing a report on the regulation of online gaming, gambling, and lotteries. A senior government official stated, “It has been decided that MHA’s Indian Cyber Crime Coordination Centre (I4C) will prepare a report based on the discussions regarding the need for a new law to regulate online gaming, gambling, betting, and lotteries. Since these activities are expanding rapidly, a decision will be made once the report is submitted.”
Currently, online gaming is regulated under the Ministry of Electronics and Information Technology (MeitY) through the Intermediary Guidelines and Digital Media Ethics Code Rules, 2021, framed under the Information Technology Act, 2000. These rules impose obligations on intermediaries, including online gaming platforms, and failure to comply results in losing exemption from liability for third-party content.
Concerns Over Financial Risks and Money Laundering
Officials suspect that online betting and gambling platforms may manipulate outcomes, leading to significant financial losses for users. Furthermore, there are concerns that revenue generated from these activities is being laundered and transferred in small sums through payment gateways.
An official communication from the central government highlighted multiple risks associated with online gambling platforms, including:
- Financial losses for users
- Data privacy concerns due to unauthorized access and storage
- Addiction-related harms, including suicide risks
- Lack of parental control and age restrictions
- Potential for offshore money laundering
Stricter Oversight for Celebrities and Advertisements
Government sources have indicated that celebrities who endorse online gambling platforms may also be held accountable under the new legal framework. This is part of an effort to regulate misleading advertisements that promote gambling-related activities.
There are also concerns over online forums and chat rooms, where users unknowingly share personal information, making them vulnerable to scams and cyber threats. Moreover, the unrestricted access some gambling apps have to system files poses additional security risks, increasing the potential for hacking and data breaches.
The Path Forward
As the government evaluates stricter laws, a decision on the framework will be made once I4C submits its findings. Given the rapid growth of online betting and gaming in India, authorities are likely to introduce more stringent regulations to curb financial crimes, enhance user safety, and establish a legal structure to govern the sector effectively.
Source:
New Law on Online Gaming, Gambling, Betting and Lottery Soon? Govt Takes First Step, news18.com, February 12, 2025.
