The Debate Between Prohibition and Regulation of Online Gaming in India
UPSC Relevance
Prelims: Indian Polity and Governance (Fundamental Rights - Article 19(1)(g), Federalism - Seventh Schedule, State List); Indian Economy (Sunrise Sectors, FDI, GST); Science & Technology.
Mains:
General Studies Paper 2 (Polity & Governance): Government policies and interventions...and issues arising out of their design and implementation; Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure.
General Studies Paper 3 (Economy/S&T): Indian Economy and issues relating to growth, development and employment; Science and Technology- developments and their applications.
General Studies Paper 4 (Ethics): The ethical dilemma of banning vs. regulating activities with potential for harm.
Key Highlights from the News
Promotion and Regulation of Online Gaming Bill 2025 has been enacted by the central government, banning online real-money games.
The article strongly criticizes this move, stating that it will disrupt a rapidly growing technological sector in the country, negatively impact foreign direct investment, and eliminate thousands of jobs.
The government's justification for the ban is to prevent financial losses and game addiction.
However, the author argues for strong regulation, not prohibition.
The ban will drive players to illegal, offshore apps, leading to loss of tax revenue for the government and increased exploitation of consumers.
There is also criticism that the central government passing the law without consulting the states is a violation of federal principles, as "Betting and gambling" is an item on the State List of the Seventh Schedule of the Constitution.
It is also argued that this may be a violation of Article 19(1)(g) (fundamental right to practice any profession).
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