Unregulated online money gaming platforms in India are emerging as serious national security and economic risks, according to the draft of the ‘Promotion and Regulation of Online Gaming Act, 2025’, as reported by Moneycontrol.
The draft highlights multiple threats, including the potential misuse of digital wallets and cryptocurrencies for money laundering and illicit fund transfers, facilitation of activities for terror organizations, non-compliant cross-border data flows, and offshore entities evading Indian tax and legal requirements.
“Modern online games are increasingly integrated with social media, digital wallets, and real-time multilayer networks, making them difficult to monitor or regulate at the state level,” the draft notes.
Given these risks, the legislation proposes a central prohibition framework, stating that such action is not just justified but essential. The law aims to provide legal clarity, safeguard public health and order, and position India as a digitally responsible nation in line with constitutional values.
The report further notes that many offshore online gaming companies are not registered in India, and some that are registered still conduct transactions via cryptocurrencies, which helps them conceal activities and minimize tax obligations. These entities are generally smaller operators based in locations such as Dubai, the Cayman Islands, and Cyprus, rather than major gaming companies.
Source: Moneycontrol
