Centre Mulling To Bring Online Gaming Platforms Like Dream11 Under PMLA

NEW DELHI: In a major regulatory move, the central government is planning to bring leading online real-money gaming platforms such as Dream11, Games24x7, and Winzo under the ambit of India's anti-money laundering legislation. The proposal, initiated by the Ministry of Finance, aims to deal with concerns regarding untraceable money transactions in the rapidly growing world of gaming.

The suggested proposal intends to register such platforms as "reporting entities" under the Prevention of Money Laundering Act (PMLA), 2002. If the plan materializes, these entities will be mandated to follow stringent requirements, such as implementing stricter Know-Your-Customer (KYC) procedures and reporting suspicious transactions to the Financial Intelligence Unit-India (FIU-IND).

Currently, the proposal is in the process of inter-ministerial consultations following the recent imposition of a 28% Goods and Services Tax (GST) on gaming deposits. The move is part of a general bid to tackle financial malpractices in the sector.

Industry observers have noted that while this regulatory step is needed to encourage transparency, it can also affect the business agility of these gaming companies.

The move demonstrates the government's intent to properly regulate the fast-changing online gaming landscape to provide a safer and more responsible environment for operators and consumers alike. More developments are expected as the proposal moves through the legislative processes that it needs to undergo.

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