Centre working to bring Dream11, Winzo, online gaming firms under PMLA: Report

Under PMLA, online gaming firms would be subject to stricter obligations such as know-your-customer (KYC) requirements, reporting suspicious transactions, etc.

Published on: Apr 8, 2025, 22:56:29 IST

By HT News Desk

Prefer HTon Google

Share via

Copy link

The Union government is allegedly finalising a proposal aimed at bringing online real-money gaming firms such as Dream11, Games24x7 and Winzo under the Prevention of Money Laundering Act (PMLA) to enforce KYC requirements and tracking of suspicious transactions, reported The Indian Express.

A man plays an online game from Chinese gaming platform Tencent on a train. (AP)

Also Read: Govt can step in to curb evils of online gaming: HC

The proposal, helmed by the ministry of finance, could result in such firms being denoted as “reporting entities” under PMLA. The Act says that reporting entities have certain record-keeping and reporting obligations as financial institutions.

Also Read: Online gaming rules are not enforceable govt tells court

These reporting entities can range from banks, financial intermediaries to people belonging to a designated business or profession.

Also Read: 357 offshore gaming platforms blocked, ₹126 crore frozen: Finance ministry

Under PMLA, a reporting entity would be required to provide information about its clients and transactions to the ministry of finance's intelligence unit. They would also have to comply with certain obligations such as maintaining a record of transactions, identity proof documents of clients and beneficial owners, account files and business correspondence of their clients.

The online gaming firms, if subjected to PMLA rules would have to work within the norms set by global money laundering watchdog Financial Action Task Force (FATF) and comply with anti-money laundering and countering the financing of terrorism (AML/CFT) rules.

IT ministry's attempts to regulate online gaming sector

In an ongoing case in the Madras high court, the IT Ministry, in a submission, said that the IT Rules provisions related to the online gaming sector were not enforceable since the ministry had not designated any self- regulatory bodies.

In April 2023, the ministry introduced rules for online gaming, enabling the establishment of self-regulatory bodies to assess the legitimacy of online games, under government oversight, along with other provisions.

The Centre had also informed parliament that the IT Ministry had issued more than 1,400 blocking orders related to online gaming websites from 2022 to February of 2025.

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

Follow India news real-time updates and the latest news covered on Hindustan Times, featuring today's critical updates on Sonam Wangchuk LIVE and more across India.