Lok Sabha passes Bill to ban online games involving monetary enrichment

Once the legislation is passed by both Houses of Parliament, offering or facilitating online money gaming will be punishable by imprisonment of up to 3 years and/or a fine of up to Rs 1 crore.

The Bill also seeks to prohibit advertisements related to online money games as well as bars banks and financial institutions from facilitating or transferring funds for any of such games.

In his opening remarks, Union IT Minister Ashwini Vaishnav said while digital technology brought many benefits, the online money games became a challenge, though e-sports and online social games like chess and solitaire were useful.

“Online money games have become a problem. Many people have become addicted and frittered away their earnings. There are opaque algorithms that lead to losses. Many families have been destroyed. In Karnataka, there were 32 suicides reported in 31 months,” he said, adding that WHO has also flagged the dangers of online money games.

Lok Sabha Speaker Om Birla said he was willing to allot time for a thorough discussion of the Bill that addressed a social cause, but the Bill was passed quickly through a voice vote, as Opposition members continued to protest and raise slogans.

The Bill aims “to promote and regulate the online gaming sector including e-sports, educational games and social gaming; to provide for the appointment of an Authority for coordinated policy support, strategic development and regulatory oversight of the sector…”

It also aims “to prohibit the offering, operation, facilitation, advertisement, promotion and participation in online money games through any computer resource, mobile device or the Internet, particularly where such activities operate across State borders or from foreign jurisdictions; to protect individuals, especially youth and vulnerable populations, from the adverse social, economic, psychological and privacy-related impacts of such games…”

The Bill endeavours “to ensure the responsible use of digital technologies; to maintain public order and protect public health; to safeguard the integrity of financial systems and the security and sovereignty of the State; to establish a uniform, national-level legal framework in the public interest; and for matters connected therewith or incidental thereto”.

The key to the Bill is the prohibitions it imposes to deal with the addictive aspects of online money gaming that lead to financial losses and psychological problems.

“No person shall offer, aid, abet, induce or otherwise indulge or engage in the offering of online money game and online money gaming service. No person shall make, cause to be made, aid, abet, induce, or otherwise be involved in the making or causing to be made any advertisement, in any media including electronic means of communication, which directly or indirectly promotes or induces any person to play any online money game or indulge in any activity promoting online money gaming,” it lays down, adding, “No bank, financial institution, or any other person facilitating financial transactions or authorisation of funds shall engage in, permit, aid, abet, induce or otherwise facilitate any transaction or authorisation of funds towards payment for any online money gaming service.”

The Bill empowers the Centre to notify an Authority consisting of a Chairperson to assist it in the implementation of the Act.