Gaming Firms to Seek Relief on Transaction Ban

Gaming companies are set to approach the government for clarity on key provisions of the newly passed Online Gaming Bill, sources told CNBC-TV18.

According to people familiar with the matter, industry

players are likely to plead that an immediate bar on financial transactions will make it difficult for them to refund gamers, as there would be no transition period to process user funds.

Companies are also expected to seek clarity on whether they can continue offering their existing games if the use of money is disabled. Another area of ambiguity is whether subscription-based services can be used to offer non-money games under the new law.

In addition, firms are likely to request guidance on whether

in-app purchases for social gaming would be permissible, given the Bill’s broad definition of real-money games.

The concerns come just a day after Parliament passed the Online Gaming Bill. The Lok Sabha cleared the Bill on August 20, followed by the Rajya Sabha a day later. Introduced by Union Minister of Electronics and IT Ashwini Vaishnaw, the law aims to ban all forms of online money gaming, while permitting eSports and social games.

The Bill also bars advertisements for money games and directs banks

and financial institutions to block related transactions. Violators could face imprisonment of up to three years, fines of up to ₹1 crore, or both.