The framework for the Online Gaming Act, which outlaws real-money games, will be ready by mid-November, sources in the Ministry of Electronics and Information Technology told NDTV Profit on Wednesday.
They also informed that the Online Gaming Authority of India might have representatives of the Ministry of External Affairs and home ministry as well. These representatives may be inducted due to the "sensitive" nature of Act.
The online gaming bill was passed by both the upper house and the lower house of Parliament in August. The legislation prohibits advertising or endorsements of platforms facilitating online games that involve monetary transactions.
The Promotion and Regulation of Online Gaming Act, which proposes the setting up of OGAI, has already been notified. It also has provisions to have members from other ministries and is currently open for public consultation till Oct. 31.
Moreover, the act proposes to bar banks, as well as non-banking financial bodies, from facilitating any transaction involving online money games. According to sources, the decision followed three and a half years of deliberations.
After the bill was passed, Union minister Ashwini Vaishnaw told the upper house that the government is working hard to curb the menace of illegal activities. "Crores of rupees have been embezzled via such applications. The Bill drafted after much deliberation. We need to protect our youth," he said.
The law was prompted by an estimated Rs 20,000 crore losses borne by players annually and a rising tide of social distress linked to it, government sources told NDTV Profit.
Widespread social distress, including family violence, bankruptcies, and even suicides, along with strong representations from Members of Parliament on the matter, prompted the Centre to bring forward this Act, they added.
Penalties proposed under the Act include up to three years in prison and a fine of Rs 1 crore for any person offering online money gaming services. Those involved in advertising or endorsing such platforms may face up to two years in jail along with a Rs 50 lakh fine.
Similarly, anyone facilitating transactions or fund transfers for online gaming could face three years of imprisonment and penalties up to Rs 1 crore.
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