Cabinet Clears Online Gaming Bill to Regulate Betting Apps

New Delhi: The Prime Minister Narendra Modi-led Union cabinet on Tuesday cleared the online gaming bill aimed at regulating online betting applications, reports said. The Bill will most likely be tabled in Lok Sabha on Wednesday.

The move comes as number of cases of fraud increased in the past few months and the investigating agencies also tighten their grip on celebrities endorsing these applications.

With a motive to regulate the online betting, the Centre has cleared the Bill and it could be tabled in Lok Sabha for discussion on Wednesday.

According to reports, the Bill also has measures of penalty and punishment for acts including the promotion of online betting apps. This comes as the Centre is likely to levy a 40% Goods and Service Tax (GST) on online gaming in the revamped regime this Diwali.

The Government of India has been working to regulate the apps promising money through online gaming, leading to financial frauds and in some cases, crimes.

Earlier in March this year, the Centre took several steps to regulate financial transactions and user data protection for digital platforms, including online gaming platforms.

The government, with an aim to bring certainty in the levy of income tax in online gaming sector, vide Finance Act, 2023 introduced income tax at the rate of thirty per cent on the net winnings in the online games with effect from assessment year 2024-25. In addition, Government also introduced GST at the rate of 28% in online gaming from October 1, 2023.