Union Cabinet Approves Bill to Prohibit Real Money Games (RMGs) Online
The Union Cabinet approved a bill aimed at effectively prohibiting real money games (RMGs) online, a significant move impacting platforms like Dream11 and PokerBaazi.
Promotion and Regulation of Online Gaming Bill, 2025
- The bill defines "online money gaming" broadly, encompassing activities involving monetary deposits with expectations of winning.
Industry Response and Background
- RMG firms have historically opposed government regulation, notably during the GST Council's decision to increase associated taxes.
- Legal victories at the state level, based on the distinction between games of skill and games of chance, now pose a potential threat due to the new regulations.
Regulatory Context and Enforcement
- Online gaming now falls under the administrative purview of the IT Ministry, which will enforce the prohibition.
- The government's prior attempt to implement self-regulation through the IT Rules, 2021, amendments faced challenges due to a lack of approved self-regulatory bodies.
E-sports Carve-out
- The bill allows the e-sports industry to continue operations, permitting video game tournaments with entry fees.
