Centre Finalising Move To Bring Online Gaming Apps Under PMLA: Report

The Centre is reportedly finalising a move that could bring online real money gaming (RMG) platforms such as Games24x7, Junglee Games, Dream11 and Head Digital Works (A23) under the purview of anti-money laundering laws.

A report by the Indian Express said that these laws would enforce stricter requirements on these apps, including know-your-customer (KYC) process, tracking and reporting suspicious transactions.

Guided by the finance ministry, the proposal has been dispatched for consultation between ministries. It may lead to the classification of the online real money gaming firms as “reporting entities” under the Prevention of Money Laundering Act (PMLA), 2002.

The was brought in force to prevent money laundering, and provides the right to confiscate the property or valuables involved in the matter.

“We believe there is a lot of unaccounted money circulating within the online gaming apps and that has to be curtailed. So, the government is moving to bring them under the PMLA ambit and require them to track and report suspicious transactions,” a senior government official was quoted as saying in the report.

The noise around regulating the online gaming sector has been on the surface since 2023, during which a hike in levy of 28% GST shook the gaming industry.

The development comes at a time when multiple state government bodies have been taking stricter measures to control the operations of online gaming platforms, given the rise in complaints of money laundering across the country.

Almost two months ago, , barring all minors (under the age of 18) from playing online real money games, while also making it compulsory for these platforms to conduct KYC verification for account creation.

States like Andhra Pradesh, Telangana and Odisha had earlier slapped a blanket ban on real money games.

Also, in September last year, the being operated by illegal gaming and betting apps via kirana stores.

Earlier reports highlighted that more than two dozen offshore gaming applications were under the radar of ED for remitting and round-tripping funds, as they have caused gamblers to incur losses to the tune of INR 1 Lakh Cr.

According to a report by Lumikai, India’s online gaming market is expected to cross $9.2 Bn by FY29, averaging a 20% annual growth rate.

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