The Union Cabinet has approved the Online Gaming Bill, which seeks to regulate betting applications across the country. The Bill is expected to be introduced in the Lok Sabha on Wednesday.
This move comes at a time when fraud cases linked to online betting have been rising, and celebrities endorsing betting platforms are under growing scrutiny from investigating agencies.
According to reports, the Bill proposes penalties and punishments for promoting online betting applications. It may also ban celebrities, sportspersons and social media influencers from endorsing such platforms. The government aims to curb the influence of star power in drawing users to betting apps, which have largely relied on celebrity-led campaigns.
The Centre is also considering a 40 per cent Goods and Services Tax on online gaming as part of a revised framework expected around Diwali.
The Bill will give enforcement agencies stronger powers to take action against offshore and unregistered operators. So far, the Directorate General of GST Intelligence has blocked 357 websites and frozen about Rs 126 crore across 2,400 bank accounts. Nearly 700 offshore entities remain under investigation for alleged tax evasion.
Reports also indicate that the legislation aims to provide clarity for domestic operators, especially those offering skill-based games. A key debate in Parliament will centre on distinguishing skill from chance and how this definition aligns with state-level gambling laws.
Earlier, the Finance Act 2023 introduced a 30 per cent tax on net winnings from online games, applicable from the assessment year 2024 to 2025. Additionally, a 28 per cent GST on online gaming came into effect on October 1, 2023.
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