Online Gaming Bill Grants Search and Arrest Powers to Curb Real-Money Platform

August 20, 2025

New Delhi: The Union government has introduced in Lok Sabha a draft measure, the Promotion and Regulation of Online Gaming Bill 2025, aimed at banning online real-money gaming (RMG) platforms.

The proposal would grant central authorities the authority to search premises and arrest individuals without a warrant if they are suspected of offences under the act. It defines “any place” to include premises, buildings, vehicles, computer resources, virtual spaces, electronic records, and electronic storage devices, and allows officers to override security measures to access digital data when needed.

Objectives and Scope
The bill targets online money gaming services and bars their advertisement, as well as transactions by banks and financial institutions with these platforms. Proponents argue the crackdown will curb addiction, financial losses, and crime linked to RMG while supporting the growth of skill-based e-sports and social gaming.

Powers Granted
The draft enables any officer appointed by the central government to enter any place and search or arrest without a warrant a person reasonably suspected of offences under the act.

Definitions
The bill expands the notion of “any place” to cover premises, buildings, vehicles, computer resources, virtual digital spaces, electronic records, and electronic storage devices.

Access to Digital Data
It states that officers may access computer resources and electronic data by overriding access controls or security codes if such codes are unavailable.

Tax and Revenue Considerations
RMG platforms currently attract a 28% GST on deposits, with a proposed rise to 40%. If enacted, the ban could erode government revenue by over ₹20,000 crore.

Rationale and Government View
The government remains committed to curbing online money gaming, citing addiction, financial loss, and crime, while emphasizing the need to regulate and differentiate skill-based and social gaming.

Officials’ Remarks
Union Electronics and IT Minister Ashwini Vaishnaw warned that these platforms often foster compulsive and addictive behavior and fraud, while underscoring the aim to protect consumers and create a regulated path for legitimate gaming.