Online Gaming Bill clears both Houses amid opposition protests
What's the story
The Promotion and Regulation of Online Gaming Bill was passed in the Rajya Sabha on Thursday. The legislation, which was cleared by the Lok Sabha a day earlier, seeks to ban all online games played with money. It aims to tackle addiction, money laundering, and financial fraud associated with such platforms. The bill also prohibits advertisements for these games and bars banks from processing related transactions.
Legal implications
Severe penalties proposed for violations
The bill proposes severe penalties for violations. Offering or facilitating online money games can lead to imprisonment of up to three years and/or a fine of up to ₹1 crore. Advertising these games could attract imprisonment of up to two years and/or a fine of up to ₹50 lakh. Repeat offenses could result in enhanced penalties, including three to five years' imprisonment and fines up to ₹2 crore.
Industry impact
Government estimates ₹20,000 crore losses annually
Tabling the bill in the Upper House, Minister of Electronics and Information Technology Ashwini Vaishnaw compared money-gaming addiction to drug addiction. He said, "The powerful people behind online money games will challenge the decision in courts." "The powerful people behind online money games will challenge the decision in courts. They will run social media campaigns against this ban. We have seen the impact of games and how the money is used to support terror."
Arguments
Sector valued at ₹2 lakh crore
According to PTI, the government has estimated that around 45 crore people lose ₹20,000 crore every year in online real money gaming. However, the online gaming industry has warned that the bill could kill over two lakh jobs and shut down 400 companies. Industry bodies warn that the ₹2 lakh crore sector, which generates ₹31,000 crore in income and ₹20,000 crore in taxes, will face a "death knell" if the proposed law is passed.