India’s parliament has passed a sweeping law banning online gambling, after government figures showed 450 million people lost a combined $2.3 billion annually on apps.
The ban impacts platforms for card games, poker and fantasy sports, including India’s wildly popular homegrown fantasy cricket apps.
The government said roughly a third of the world’s most populous country had lost money gambling online.
The Promotion and Regulation of Online Gaming Bill was passed by both houses of parliament late on Thursday, and criminalises the offering, promotion and financing of such games, with offenders facing up to five years in prison.
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“This legislation is designed to curb addiction, financial ruin and social distress caused by predatory gaming platforms that thrive on misleading promises of quick wealth,” a government statement said.
India’s wider gaming industry is one of the largest markets in the world, but the new law carves out exceptions for e-sports and educational games, which the government says will be promoted as part of the digital economy.
Prime Minister Narendra Modi said the new law will “encourage e-sports and online social games” while “at the same time, it will save our society from the harmful effects of online money games.”
Industry groups had urged regulation and taxation rather than a blanket ban, warning the move could drive players to illegal offshore platforms.
But supporters of the bill argue that the social costs are too high to allow.
Officials said the rapid spread of gambling platforms had caused widespread financial distress, addiction and even suicide.
The government said it had also been linked to fraud, money laundering and terrorism financing.
Ashwini Vaishnaw, minister of technology, noted the law differentiates between online “social” games and those played for money.
“It encourages e-sports, which are organised competitive video games, and promotes safe online social and educational games”, a government briefing note read.
“It separates constructive digital recreation from betting, gambling and fantasy money games that exploit users with false promises of profit.”
