Key Points

Speaking to ANI about the bill, Vaishnaw emphasised the government's efforts over the past three years, where they were "deeply engaged" with the gaming industry.

He said, "Our purpose of this bill and this exercise has been ongoing for almost three plus years, where we have deeply engaged with industry to see how the harmful impact can be prevented, contained and reduced

He explained that the Bill's objective is to "promote and encourage the good parts," focusing on making India a hub for game development through institutions like the Indian Institute of Creative Technologies (IICT), where gaming is a key vertical.

Vaishnaw said, "Our objective has been to promote and encourage the good parts of it, making India a game-making hub, we have set up the IICT which is Indian Institute of Creative Technologies and gaming is one of the verticals, so our focus is on making sure that the better parts, the good parts which are not harming the society get promoted and encouraged whereas the harmful impact on the society can be contained and reduced."

Lok Sabha on Wednesday passed The Promotion and Regulation of Online Gaming Bill, aiming to promote e-sports and online social games, while outlawing online money gaming.

The Bill was brought in to encourage e-sports and online social games while prohibiting harmful online money gaming services, advertisements, and financial transactions related to them. The Bill seeks to completely ban on offering, operating, or facilitating online money games, irrespective of whether based on skill, chance, or both.

"When it comes to society, middle-class people, or a segment of industry. When it comes to society and government revenue, our prime minister has always chosen society. Never have we compromised on the interest of the society," Union Minister for Electronics and Information Technology Ashwini Vaishnaw said, requesting the House, particularly the Opposition members, to unanimously pass the Bill in the Lok Sabha.

"Online gaming has three segments. First is e-sports which needs strategic thinking, team building, enhances cultural exchange...The second segment is online social games, be it Solitaire, Chess, or Sudoku. They are educative and entertaining. They are widely played," Vaishnaw further said.

"There is a third segment, online money game, which is a cause of concern in society. There are people, there are families who got addicted to online money games. They lose their hard-earned money. Algorithms are sometimes such that it is different to know with whom you are playing. Algorithms are opaque."

"Many families have been devastated, many died by suicide," the minister said. Online money game is seriously affecting families, terror being financed, money being laundered.

Through this legislation, the government aims to promote e-sports and give them legal recognition. This bill will help in providing legal support to e-sports. Earlier, there was no legal backing for e-sports, sources said.

"We have interacted with the 3rd segment of the online gaming industry. We tried to impose GST also, but the challenge continued. We had no option but to choose society for the welfare of people," a source said.

For the promotion of e-sports, which has been recognised as a legitimate form of competitive sport in India, the Ministry of Youth Affairs and Sports will establish a dedicated framework. Online social games will also be promoted by the government.

It is the online money game, according to sources, that is a big problem for society. Several reports of suicide, violent attacks and other challenges were reported, the sources added. "Fraud and cheating are happening through these games and several families are ruined."

The government believes that the harms of addiction, financial losses, and even extreme consequences such as suicides associated with online money gaming can be prevented by prohibition of such activities.

There are reports of money laundering and terror financing, the sources added.

Failing to fulfil the law, once enacted, can attract imprisonment up to 3 years and/or fine up to Rs 1 crore for offering or facilitating online money gaming. For advertising money games, and imprisonment up to 2 years and/or fine up to Rs 50 lakh may be attracted. for financial transactions related to money games, imprisonment up to 3 years and/or fine up to Rs 1 crore is being provided.

Any repeat offences may attract enhanced penalties, including imprisonment of 3-5 years and fines up to Rs 2 crore. Offences under key sections to be cognizable and non-bailable.

The central government may authorise officers to investigate, search, and seize digital or physical property linked to offences, and officers would be empowered to enter, search, and arrest without warrant in certain cases of suspected offences.

- ANI