Online real money gaming was ruining our country and youth: FM Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman has strongly defended the government’s decision to regulate online gaming, stressing that the move was driven by concerns from families over financial losses and rising cases of addiction among children.

In August, the government passed the Promotion and Regulation of Online Gaming Act, aimed at banning money-based gaming while allowing recreational play. During an exclusive interview with Rahul Joshi, Network18 Group Editor-in-Chief while explaining the rationale, Sitharaman said, "We have not banned games which are for recreational purposes. It is only when you start betting for money. We have banned it not because we do not like it, it is because number of families have come forward to say that they are being shaken up, they are monthly bills have shot up and children cannot be controlled from the temptation."

She shared an example cited by a state finance minister, highlighting how children unknowingly incur heavy expenses on digital games. "He narrated an incident of his family and his grandson used his credit card for one day to buy family for some purpose related to family related genuine buying requirement. Another day he asked the credit card for something and the boy used the card and play games and gave back the card, which was done 2-3 times leading to phenomenal increase of bills."

Sitharaman said the child believed he was playing free games, but hidden charges led to ballooning costs. "The grandson told the state Finance Minister that he played games that were free and did not play any money games. The young child was under the impression he was playing a free game but it was chargeable. Many people approached us including PMO and said that money games were ruining our country and youth and that is the reason law was brought to fore."

The Finance Minister underlined that the government’s approach distinguishes between entertainment and gambling, ensuring that digital gaming for fun is unaffected while curbing exploitative money-gaming platforms.

Talking about GST overhaul, she said, “Eight months ago, the PM called me and asked how GST could be revamped. Around Budget 2025, he reminded me again,” Sitharaman told Network18 Group Editor-in-Chief Rahul Joshi in an exclusive conversation.

The government this week scrapped the 12% and 28% tax slabs, leaving only two broad rates — 5% and 18%. The new structure will take effect from September 22, 2025, and has been positioned by the Centre as a “Diwali gift” for citizens.

Sitharaman described the exercise of reclassifying items under two slabs as “rigorous yet fascinating.” She said the aim was not just revenue collection but also reducing confusion for consumers.

Giving the example of popcorn — previously taxed at 5%, 12%, or 18% depending on packaging, material, or flavour — she said such inconsistencies highlighted the need for simplification. “The council regrouped items in a way that no confusion remains,” she added. Now, all varieties of popcorn will attract a uniform 5% GST.

“Today, 99% of all goods and services under GST fall into either the 0%, 5% or 18% slabs. The remaining 1% applies only to demerit or ‘sin’ goods. That shows the extent to which we’ve cleaned up the system—removing anomalies, doubts, duplication, and interpretative issues,” the Finance Minister said.

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