What does the new online gaming Act outline? , Pg8

Key Highlights:

• The Promotion and Regulation of Online Gaming Act, 2025 was passed by the Lok Sabha on August 20 and received Presidential Assent on August 22.
• The Act categorizes online games into e-sports, social gaming, and Real Money Games (RMGs), aiming to ban all forms of RMGs.
• Violations under the Act are punishable with imprisonment up to three years and/or a fine up to ₹1 crore; unlawful advertisement attracts imprisonment up to two years and/or a fine up to ₹50 lakh.
• The Act empowers the Central government to constitute a regulatory authority for online games and allocates budget from the Consolidated Fund of India to promote social gaming.

Detailed Insights:

• The Act was introduced in response to complaints of users losing significant amounts of money on RMGs, with government data suggesting annual losses of ~₹15,000 crore.
• The World Health Organization (WHO) has linked RMGs to compulsive behavior, psychological distress, financial hardship, and disruption of family life.
• The Act defines an online money game as one played for a fee or with the expectation of winning money, including variants of games like Poker and Rummy.
• The Indian Computer Emergency Response Team (CERT-IN) will be responsible for blocking apps providing banned money gaming services, potentially involving Interpol for offshore operators.
• The Act does not differentiate between games of skill and games of chance, potentially conflicting with the Right to Trade and Occupation guaranteed under Article 19 (1) (g) of the Constitution.
• State governments have previously taken regulatory actions, with Telangana, Andhra Pradesh, and Tamil Nadu banning various forms of online gaming.
• In 2023, the government imposed a uniform 28% GST on the entire entry fee/deposit for online gaming, which gaming firms have opposed.

Key Concepts Involved:

• Real Money Games (RMGs): Online games played with the expectation of winning money or other stakes.
• Games of skill:  In these games, players can improve their chances of success through practice and experience. Winning is not a matter of luck but rather a player's ability to apply strategies and make informed decisions. Example: Chess, Billiards/Pool.
• Games of chance: In these games, the outcome is strongly influenced by a randomizing device or process, such as a dice roll, spinning wheel, or random number generator. Players have very little, if any, control over the result. Example: Roulette, Bingo and Lotteries.