India Moves to Ban Online Gambling, Citing Addiction and Terror Financing Risks

India’s government introduced a bill in Parliament on Wednesday aiming to ban online gambling, citing rising concerns over addiction, financial harm, and possible links to money laundering and terrorism financing.

The legislation, presented in the lower house, targets platforms that offer games where users pay fees or place monetary stakes with the expectation of winning cash rewards. This broad definition would cover a wide range of services, from online poker and fantasy sports platforms to India’s hugely popular fantasy cricket apps — some of which are major sponsors of the Indian Premier League (IPL) and the national cricket team.

If passed, the bill would criminalize the offering of online money gaming, with penalties including prison terms and fines for individuals and companies involved.

Lawmakers backing the bill argue the move is essential due to the “unchecked expansion” of the online gambling industry, which the proposed legislation links to “financial fraud, money laundering… and in some cases, the financing of terrorism.” It also highlights the social and financial impact on young users, citing gambling addiction and debt accumulation.

The proposed ban has sparked strong opposition from industry groups. The All India Gaming Federation and the Federation of Indian Fantasy Sports warned that banning regulated Indian platforms could drive millions of users to unregulated and potentially unsafe offshore gambling websites.

“Instead of protecting people, this bill risks exposing them to fraud, exploitation and unsafe practices,” the two groups said in a joint letter on Tuesday, urging lawmakers to reconsider the approach.