Online Gaming Bill To Regulate Betting Apps Gets Cabinet Nod: Report

The Union Cabinet, chaired by Prime Minister Narendra Modi, today reportedly approved the Online Gaming Bill, which aims to regulate betting apps and put strict checks on gambling.

The Bill seeks to bring online gaming platforms under a legal framework and introduce penalties for gambling via digital apps.

A Zee Business report said that the Bill prohibits the promotion of betting apps by renowned personalities such as celebrities and influencers, in any form.

It further said that the Bill would be tabled in the Lok Sabha for discussion tomorrow.

According to reports, a special 40% tax rate is being considered for goods falling under the “sin and demerit” category. Items likely to be included in this top slab are pan masala, tobacco, cigarettes, luxury cars and online gaming.

However, the GST slab will only come into effect after scrutiny by the Group of Ministers, followed by the fitment committee and the GST Council’s final nod, with the structure expected to be ready by October

Centre’s Crackdown Sparks Clash With Gaming Companies

Since October 2023, online gaming firms have been subjected to a 28% GST on the full-face value of the bets placed, a levy that they have been contesting in the Supreme Court against the Centre’s decision.

In May, the Directorate General of GST Intelligence (DGGI) reportedly told the SC that online gaming companies are engaging in activities that qualify as betting and gambling, which are subject to the GST. 

In July, the online gaming businesses informed the SC that the 28% GST on real money games was fundamentally flawed and contrary to the legal framework.

To which, the Centre argued before the apex court that gaming companies qualify as “supplier” and would therefore become the “taxable person”, even if no specific HSN code exists for their services.

Notably, the government issued 1,524 orders to block online betting and gambling platforms between 2022 and June 2025, minister of state (MoS) for IT Jitin Prasada had informed the Parliament in a written reply. 

How Indian States Are Regulating Online Gaming

Multiple states throughout this year have been introducing new rules to regulate online games and gambling to prevent and penalise public gambling, keeping of common gambling houses, betting in sports or elections, match fixing or spot fixing in sports. 

To name a few, Haryana, Chhattisgarh, Tamil Nadu and Karnataka have enforced these rules in their states.

Apart from the never-ending tax troubles for the gaming businesses, the sector has also been under regulatory scrutiny in terms of controlling users’ addiction towards betting games.

Earlier this year, Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025 were rolled out in TN, restricting real money online games between midnight and 5 AM. The state government also notified the new online gaming rules, which effectively bars all minors (under the age of 18) from playing online real-money games.