The government, taking this seriously, aims to ensure ethics and transparency in the digital space. Many betting apps attract users, especially young people, under the guise of entertainment and gaming, leading to financial losses and addiction. The central government has approved an Online Gaming Bill, which will impose a complete ban on advertisements for betting-related apps. A deeper dig into the National Cybercrime Reporting Portal (NCCRP) linked this racket to 67 fraud complaints, involving fake investment schemes, job offers, and online shopping scams, with Rs 7.96 crore siphoned off. These fake firms opened multiple current accounts, enabling the duo to siphon off ₹1.35 crore in the guise of e-commerce and gaming transactions. These platforms are believed to have generated illicit funds worth crores of rupees, often routed through complex hawala channels to avoid detection.
Online betting case: ED attaches Rs 177 crore assets of Congress MLA KC Veerendra in Karnataka
The Bureau of Indian Standards (BIS) could establish criteria for defining skill-games. A robust legislative framework with government oversight would enhance user protection; however, developing such a framework may be time-consuming, prolonging the current regulatory uncertainty for the industry By allowing the government to maintain regulatory oversight while delegating the determination to SRBs, the self-regulatory nature of this solution can enhance flexibility, address the risks/harms, and foster industry innovation. This Committee would provide recommendations and guidelines for defining permissible games, which could be used by SRBs, thereby further strengthening the functioning of SRBs.
The agency has been meticulously investigating a vast network of online betting apps, many of which are suspected of masquerading as skill-based games while actually engaging in illegal gambling. The draft amendments envisage that an online gaming intermediary shall observe the due diligence required under the rules while discharging its duties, including reasonable efforts to cause its users not to host, display, upload, publish, transmit or share an online game not in conformity with Indian law, including any law on gambling or betting. While the Advisory makes a reference to the ASCI Online Gaming Guidelines issued in December 2020 in relation to advertisements of online gaming platforms, the prohibition under the Advisory extends only to online betting and gambling platforms and not online gaming. With the growth of the online gaming sector, cyberattacks have risen, with over 75 percent of Indian gamers reporting attacks on their account in a 2021 survey. The online gaming sector is permitted to have 100-percent Foreign Direct Investment (FDI) through the automatic route within the Electronic System and IT & BPM sectors, provided the investment is in a game of skill, or non- rewarding games of chance. The online gaming industry’s contribution to the digital economy is notable, with a projected CAGR of 15 percent by FY28, surpassing other emerging sectors within the digital economy.
India’s online gaming law jurisprudence is based on the PGA, which exempts games of skill from its provisions. The proliferation of these illegal platforms exposes users to financial fraud, as they are not able to distinguish them from legitimate, safe online games. With the growth of the online gaming industry, instilling responsible gaming principles and providing support for vulnerable demographics, especially children, is essential. As online gaming flourishes, it will stimulate further growth and advancements in fintech, leading to innovative payment solutions and contributing to the broader digital economy.
Using BIS Standards for Determining Permissibility of Games
Another study, titled ‘The Economic Impacts of Video Game Technology Spillover’, assessed how video game technologies contribute to non-game sectors in the United Kingdom and select Nordic economies. Furthermore, creative professionals from the gaming industry frequently transition into other fields, bringing new techniques and ideas that contribute to broader economic and social innovation. For example, rapid development cycles and innovative organisational models in gaming are adopted by other sectors to boost innovation. The sector stimulates demand for complementary products, including processors, content, devices, and broadband internet access, driving sales and accelerating related technology development. A Finnish study titled ‘The Digital Games Industry and its Direct and Indirect Impact on the Economy’ noted that the gaming industry’s economic contribution extends beyond direct impact on GDP. Online gaming growth accelerates the demand for complementary products and drives faster development.
- The Supreme Court introduced the ‘preponderance test’, wherein, a ‘game of skill’ is one where the element of skill predominates the element of chance.
- The ED has accused both Google and Meta of actively facilitating the promotion of betting applications that are currently under investigation for serious financial crimes, including money laundering and hawala transactions.
- Cloud gaming works best on fiber broadband due to its low jitter, high consistency, and fast real-time data transfer.
- Over the last year, GST authorities have notified Ministry of Electronics and Information Technology, Government of India (MeitY) about more than 170 non-compliant offshore gaming platforms and requested their blocking.
- Over the past decade, India’s gaming sector has evolved into a billion-dollar powerhouse, driven by the rise of gaming content creators.
Appointment of SRBs for Implementation of the IT Rules, 2023
Police said the accused were also actively involved in betting on illegal apps, explained betting methods to others, and helped expand the network through social media platforms. a Prime Minister Narendra Modi, in his Independence Day speech in August 2024, recognised the importance of the online gaming sector and emphasised that India could lead the world of gaming and make a global impact. To address online gaming addiction, the government could consider mandating gaming companies to have responsible gaming practices, such as giving warnings to its users on the time and money spent, encouraging breaks, and allowing users to set their personal monetary limits.
In some instances, they post clips of newly released movies and web series containing adult content as bait. So far, it was good, but some people who are eager to make money are promoting betting apps and websites. Influencers are gaining popularity by increasing their followers on social media with interviews and funny videos.
Reports suggest that UPI deposits for Casumo (a Maltese online casino and sportsbook services company), are credited to an account under ‘JeBasket’, registered as a wholesale grocery company in Ludhiana, Punjab. Minors face heightened risks, as many websites neglect KYC or age verification checks, enabling access to inappropriate content and unlawful activities. These illegal websites use deceptive advertising tactics, enticing unsuspecting users with exaggerated promises. Off-shore betting poses challenges for India, threatening both individual customers and national security. Due to its seriousness, ‘gaming disorder’ was included in the 11th edition of the International Classification of Diseases (ICD-11) as a clinically significant syndrome. Furthermore, platforms employ analytics for fraud detection and revenue optimisation.