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The authorities have increasingly focused on imposing enhanced penalties and taking decisive action against both domestic and offshore operators, including issuing blocking orders to restrict access to foreign platforms offering services in India. Please also note that since the New Act prohibits all online real-money games — which include fees or deposits made by end users in the form of money or other stakes, the use of VDAs in the context of online real-money games would also be prohibited. Also, the services provided through an online platform (over the internet), which are impossible to ensure in the absence of information technology, are covered within the scope of “online information and database access or retrieval services” (“OIDAR”) and include online gaming. Where the income of a resident includes income by way of winnings from online games of any sort, including in the nature of betting, gambling, etc., such income would be liable to tax in the hands of such taxpayer, at 30% (plus applicable surcharge and cess). On the other hand (a tax resident will be charged to tax in India on his global income), i.e., income earned in India as well as income earned outside India. While this does not fall within the ambit of a “licence”, an OGI offering an “online real-money game” is required to obtain a verification from an SRB in order to offer its online game to users in India.

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Private individuals or companies might be designated by the state government to assist with the operation of the lottery managed by the state. Should the Rajasthan Bill be presented, the officers designated by the state government will serve as the licensing authority. Nevertheless (Indian courts have determined the distinction between games of skill and games of chance based on the specific facts and circumstances of individual cases), rather than establishing an objective criterion.