The Union Cabinet on Tuesday approved a landmark bill aimed at bringing strict regulation to the booming online gaming industry, declaring betting on digital platforms a punishable offence. The draft legislation is expected to be tabled in the Lok Sabha on Wednesday, according to sources familiar with the matter.

Under the new law, the Ministry of Electronics and Information Technology (MeitY) will act as the nodal authority overseeing all online gaming platforms operating in the country. Officials said the legislation seeks to curb exploitative practices, addictive behaviour, and fraudulent schemes that have proliferated in the digital gaming space.

“The Cabinet has given its green light to a comprehensive framework for regulating real-money gaming platforms. The government is likely to present the bill in Parliament on Wednesday,” a senior official told reporters, requesting anonymity.

The move comes amid growing public concern over betting-related tragedies, including suicides, and adds to earlier steps taken by the government. In 2023, a 28% GST was imposed on online gaming, followed by a 30% tax on winnings effective from FY 2024–25.

Reports suggest the new law will criminalise unauthorised online betting with prison terms of up to seven years. Endorsements that encourage gambling or betting could also attract penalties. However, gambling enforcement will remain largely within the jurisdiction of states, as mandated by the Constitution.

Since 2022, the government has blocked more than 1,400 betting websites and apps. Ministries have also issued advisories to schools, parents, and broadcasters, making disclaimers mandatory on gaming-related advertisements to highlight addiction risks.