India moves towards single regulatory framework for online gaming, report says
The Indian government plans to set up a committee comprising officials from the home ministry, legal and policy experts, and gaming industry representatives to explore a unified regulatory framework for online gaming, according to a local media, Mint, report. The move aims to replace the current patchwork of state-specific laws governing the sector.
The proposed committee’s discussions may include the need for a new law distinguishing gaming from gambling, an issue that has remained contentious despite the Supreme Court’s ruling that online gaming is a game of skill, while gambling is a game of chance. The government recognises the industry’s strong growth potential, the newspaper said.
Need for regulatory clarity
New Delhis push for regulation is driven by two key concerns. Firstly, the government seeks clarity on taxation policies for online gaming companies, which are currently challenging Goods and Services Tax (GST) notices amounting to ?1.12 trillion (12.39 billion) in the Supreme Court. The bench, comprising Justices JB Pardiwala and R Mahadevan, granted the stay following the GST departments request and scheduled the case for further hearing on 18 March 2025.
Secondly, the home ministry is concerned about offshore entities hosting online gaming and betting platforms, which could be exploited for money laundering. A well-defined regulatory framework could help address these issues while fostering industry growth.
State-level restrictions and SC challenges
Several Indian states have attempted to impose their own regulations or bans on online gaming. Karnataka sought to ban online gaming in 2021 but was unsuccessful. In 2023, it announced plans to regulate the industry instead. Similarly, Maharashtra attempted to restrict online gaming in December 2023. Last week Tamil Nadu has introduced a stringent set of regulations aimed at controlling online real-money gaming. These rules, outlined under the Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025, impose significant restrictions, including a complete prohibition on minors engaging in real-money gaming and mandatory Know Your Customer (KYC) verification for all users.
Existing regulations under MeitY
Online gaming in India is presently governed by the (MeitY) under the Intermediary Guidelines and Digital Media Ethics Code Rules, 2021, issued under the Information Technology Act, 2000. Such rules place obligations of due diligence on online gaming websites. Non-compliance will lead to denial of exemption from third-party content liability.
