Promotion and Regulation of Online Gaming Bill 2025 Raises Federalism and Economic Concerns
The Promotion and Regulation of Online Gaming Bill 2025, passed during the monsoon session, has drawn criticism for its potential impact on India's digital economy. The Bill outlaws online real-money games, a move that critics argue violates the fundamental right to practice a profession under Article 19(1)(g). Furthermore, as 'betting and gambling' are State subjects under the Seventh Schedule, the Union's unilateral ban is seen as an encroachment on federalism. The industry was expected to generate ₹17,000 crore in GST revenue and employ 1.5 lakh people by 2025. Experts suggest that strict regulation and licensing would be more effective than total prohibition.
Key Points
- The Bill bans real-money online gaming, potentially pushing the industry into the unregulated underground economy.
- Judicial precedents have consistently distinguished between 'games of skill' and 'games of chance,' protecting the former.
- The lack of consultation with State governments on a State subject raises significant constitutional propriety issues.
- The ban could lead to a loss of significant foreign direct investment and thousands of skilled jobs in the tech sector.
Exam Facts
- Constitutional Article: 19(1)(g) (Right to practice profession).
- Projected GST revenue loss: ₹17,000 crore.
- Constitutional Schedule: Seventh Schedule (State List for betting/gambling).
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