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Ban on Online Gaming
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Context
The Promotion and Regulation of Online Gaming Bill, 2025 was passed by Parliament, banning online real money games while promoting e-sports and social games, sparking debates on legality, economy, and federalism.
Economic and Employment Impact
- Job Losses: The gaming sector, projected to employ 1.5 lakh skilled professionals by 2025, faces large-scale job disruptions due to the sudden ban.
- Revenue Loss: The ban eliminates around ?17,000 crore in potential GST revenues for both Union and State governments.
- Investment Shock: Sudden policy reversal undermines foreign direct investment confidence, weakening India’s credibility in digital industries.
Regulatory and Constitutional Concerns
- Lack of Consultation: The Bill was passed without debate or consultations with States, despite betting and gambling being State subjects.
- Right to Profession: The prohibition conflicts with Article 19(1)(g), which guarantees the right to practise any profession or business.
- Judicial Grey Zone: Courts have distinguished ‘games of skill’ from ‘games of chance,’ but the blanket ban disregards this constitutional doctrine.
Governance and Alternatives
- Responsible Gaming Tools: Age-gating, deposit limits, KYC checks, and anti-addiction safeguards were already being developed by the industry.
- Risk of Illegal Platforms: Prohibition is likely to push users towards offshore, unregulated apps that evade taxation and expose players to fraud.
- Middle-Ground Approach: A clear licensing regime, strict compliance standards, and predictable taxation could balance innovation with public interest.
Practice Question
The Promotion and Regulation of Online Gaming Bill, 2025 has reignited debates on economic growth, constitutional propriety, and federalism. Critically examine the implications of the ban on online real money games and suggest a balanced regulatory framework for India’s digital economy. (250 words)
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