Even as India’s gaming sector protested government’s efforts to bring in a law to regulate online gaming sector, especially sections that involve money, and experts opined that banning of gaming firms could lead to revenue loss for the government and sports sector, the proposed law cleared Lok Sabha yesterday very quickly after being tabled in the first half of the day.

According to a PTI report from New Delhi, Lok Sabha yesterday 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.

The Bill still has to still get the nod from the Rajya Sabha or Upper House, though a section of policy-makers felt it should have been debated in more detail and, probably, referred to a committee of MPs.

“When it comes to society, middle-class people, or a segment of industry. When it comes to society and the government revenue, our prime minister has always chosen the society. Never have we compromised on the interest of the society,” Minister for Electronics and Information Technology (Meity) Ashwini Vaishnaw said, requesting Lok Sabha, particularly the Opposition members, to unanimously pass the Bill. Opposition members continued raising their slogans, as the Bill was passed by voice vote, the PTI report added.

“Online gaming has three segments. First is e-sports which needs strategic thinking, team building, enhances cultural exchange…Second segment is online social games, be it Solitaire, Chess, 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 the 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, adding online money game is seriously affecting families, terror being financed, money being laundered.

There will be no punishment for those playing online money games; it is only the service providers, advertisers, promoters, and those who financially support such games will face the consequences, said sources.

Media reports stated the bill outlaws all online betting and gambling (satta and jua) activities — from online fantasy sports to online gambling (like Poker, Rummy and other Card games) and online lotteries all likely to be shuttered if the Upper House too gives its nod.

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

Advertising of money games can attract imprisonment up to two years and/or fine up to Rs 50 lakh. Facilitating financial transactions related to money games can lead to imprisonment up to three years and/or fine up to Rs 1 crore.

Repeat offences attract enhanced penalties, including 3-5 years’ imprisonment and fines up to Rs 2 crore. Importantly, offences under key sections are sought to be made cognizable and non-bailable.