By iastoppers.com

Why many Online Betting or Gaming applications like Mahadev app were banned?

Introduction

The Centre issued blocking orders against 22 illegal betting apps and websites, after requested by ED

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Indian Law for Skill vs. Chance

Indian law distinguishes Games of Skill & Chance, former relies on player's knowledge whereas later depend on luck

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Indian regulation on gaming

Regulation by Public Gambling Act, 1867 & Information Technology Act, 2000 (Section 66, 67A, 67B)

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K. R. Lakshmanan Judgment

Supreme Court's ruling given on skill vs. chance, where it defined gambling based on predominance

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Recent Developments

Amendments to IT Rules, 2021 were made with focus on safeguarding gamers from addiction and harmful content

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Dispute Resolution

3-tier mechanism to regulate them with “Grievance Redressal System” and self-regulatory organization for registration and certification

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Definition of Online Real Money Games

Games where the player deposits assets in the expectation to earn more winnings, and are verified with the self-regulatory bodies

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Regulations for Intermediaries

Introduction of regulations for online gaming intermediaries, including internet providers, web hosting companies, etc

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KYC (Know Your Customer)

Online gaming intermediaries must verify users through KYC

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Taxation - Withdrawal Winnings

30% tax on withdrawal winnings to discourage casual gamers and reduce the number of players

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GST Council's Move

GST Council introduces uniform 28% tax on online gaming covering domains like casinos, horse racing, etc

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State vs. Central Laws

New regulations don't replace existing state laws, which balances jurisdiction between centre & state

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