Government to regulate online betting, gaming sectors | Latest News India

The government is preparing to introduce new legislation aimed at regulating online gambling and betting platforms, in a move that seeks to curb fraudulent practices and support the legal gaming sector, said senior cabinet ministers said on Wednesday.

Home minister G Parameshwara announced on Wednesday that a committee comprising senior officials and industry stakeholders has been formed to draft the proposed law. “I chaired a meeting regarding online betting and gambling along with the IT Minister. Representatives from the industry were called. There is nothing to regulate them so far. They have agreed to the introduction of a licence system and a regulation as per law,” Parameshwara told reporters in Mandya. The committee has been given a month to submit the draft bill.

Once the draft is ready, the government plans to bring in a new law that draws on regulatory models like that of Chhattisgarh, which differentiates between gambling and skill-based gaming, he said.

IT and BT Minister Priyank Kharge, who has been closely involved in the drafting process, said the proposed law is designed to prohibit games of chance while supporting innovation and the growth of skill-based online gaming. He said the intention is to protect users from financial fraud and exploitation while ensuring the legitimate gaming industry continues to thrive.

Kharge highlighted the importance of Karnataka’s role in the country’s online gaming landscape. “The legitimate online skill-based gaming industry in India is a sunrise sector worth $4 billion, contributing ₹12,000 crore in taxes and creating over 150,000 jobs. Karnataka alone accounts for 25% of the market and contributes ₹1,350 crore annually in taxes, making it a key hub,” he said.

However, the minister also raised alarm over the parallel growth of illegal and offshore betting operations, which he said pose serious risks to consumers. “Alongside the legitimate sector, there is a parallel underground market that is expanding rapidly, posing risks such as predatory money collection practices, dubious shell companies, financial fraud, data breaches, and cybercrimes,” he said.

Kharge said he recently held consultations with stakeholders including representatives from the E-Gaming Federation (EGF), the All-India Gaming Federation (AIGF), and the Federation of Indian Fantasy Sports (FIFS). These organisations have worked together on a ‘Code of Ethics’ for the gaming industry, which is expected to play a role in shaping the new legislation.

Despite a ban already in place on online betting and certain gaming apps, the state continues to witness widespread use of such platforms, many of which operate from outside the country. Kharge acknowledged the enforcement gaps and the difficulty in cracking down on illegal operators. “What is illegal must be banned first. If any platform is legal, we’ll work on how best to regulate it,” he said.

He stressed the need for better enforcement of existing laws and stronger mechanisms to protect users. “There are laws already in place, but their enforcement has been lacking. We’ve held discussions on how to protect our citizens from falling victim to such platforms,” Kharge added.