MAINS Current Affairs includes Online Gaming Regulation in India: Reassessing the PROG Act, 2025 & Global Housing Crisis: A Challenge to Inclusive Urban Growth

POLITY

1. Online Gaming Regulation in India: Reassessing the PROG Act, 2025

Context: The Promotion and Regulation of Online Gaming (PROG) Act, 2025 was introduced to shield citizens from the negative effects of online betting and real-money gaming platforms. However, instead of curbing gambling activities, the law appears to have encouraged many users to shift toward illegal offshore betting websites.

Online Gaming in India

India’s online gaming sector includes:

• casual games such as puzzles and strategy games,
• fantasy sports,
• real-money gaming (RMG) platforms,
• online betting and gambling,
• esports and competitive gaming.

The sector has grown rapidly due to increasing smartphone usage, affordable internet services, digital payment systems, and India’s large young population. Today, India is considered one of the world’s biggest online gaming markets.

Expansion of the Online Gaming Industry

India has more than 500 million gamers, and the sector is expected to expand further because of:

• wider 5G connectivity,
• growth in digital payments,
• increasing investments,
• rising popularity of esports and fantasy gaming.

Globally, nearly 80% of gamers are adults, with the majority belonging to the 18–34 age group, while the average gamer is in the mid-30s. Mobile gaming has become the most dominant segment worldwide, with around 3.6 billion players.

The industry also contributes significantly through:

• employment generation,
• startup ecosystem growth,
• technological innovation,
• tax revenue generation.

Regulatory Framework for Online Gaming

Existing Regulatory Structure

• Regulation of online gaming in India remains fragmented and lacks a unified national framework.

Constitutional Position

• Betting and gambling fall under Entry 34 of the State List in the Constitution, allowing states to frame their own gambling laws independently.

Role of the Union Government

• The Ministry of Electronics and Information Technology (MeitY) supervises online intermediaries under the Information Technology Act, 2000 and the IT Rules, 2021.

Recent Government Actions

The central government has:

• blocked thousands of illegal betting websites,
• issued advisories against offshore betting apps,
• strengthened cybercrime surveillance mechanisms.

Purpose Behind the PROG Act, 2025

The PROG Act was enacted to:

• protect youth from gambling addiction,
• prevent financial exploitation,
• reduce psychological harm,
• safeguard digital privacy,
• curb money laundering through betting networks.

The legislation sought to ban or heavily restrict online money gaming platforms considered harmful.

Importance of the PROG Act

Formalising the Industry

• The Act attempts to bring regulatory clarity, improve investor confidence, and ensure compliance among gaming operators.

Encouraging Esports

• Recognition of esports as a legitimate sector aligns India with global digital gaming trends.

Improving Digital Governance

• The law reflects India’s broader effort toward platform regulation and digital accountability.

Protecting Consumers

• The framework places user protection above profit-oriented gaming models.

Key Concerns and Challenges

Rise of Offshore Betting Platforms

Evidence indicates that many users moved from regulated domestic platforms to illegal offshore websites after the restrictions were imposed.

A study by CUTS International found that offshore participation increased significantly:

• Delhi NCR: from 68.3% to 82%
• Tamil Nadu: from 67.8% to 83%
• Maharashtra: from 66.7% to 91.7%

This suggests that prohibition reduced legal participation but did not eliminate demand. Instead, users shifted toward unregulated platforms.

Enforcement Difficulties

Offshore betting operators often evade restrictions through:

• VPNs,
• proxy servers,
• mirror websites,
• encrypted platforms such as Telegram and WhatsApp.

Authorities face challenges because blocked domains are quickly replaced with new ones.

Cybercrime and Financial Risks

Illegal betting networks are increasingly associated with:

• money laundering,
• hawala transactions,
• identity theft,
• fraudulent investment schemes.

Criminal networks have also used “mule bank accounts” opened in the names of poor villagers to move illicit funds.

Weak Consumer Protection

Users engaging with offshore platforms often lack:

• effective grievance redressal,
• legal protection,
• proper data privacy safeguards.

This creates a major regulatory and legal vacuum.

Problems with Blanket Bans

Strict prohibitory approaches can:

• push activities underground,
• encourage illegal markets,
• reduce state oversight,
• increase criminal involvement.

Digital platforms are particularly difficult to ban completely because users can bypass territorial restrictions online.

International Examples

United Arab Emirates (UAE)

Despite historically banning gambling, the UAE introduced:

• a federal licensing framework,
• strict compliance standards,
• deposit limits,
• consumer protection measures

to reduce risks arising from unregulated offshore platforms.

Sri Lanka

Sri Lanka is creating a centralized Gambling Regulatory Authority, expected to become operational by 2026, to regulate offshore online gaming within a legal domestic framework.

Way Forward: Regulation Instead of Complete Prohibition

Move Toward a Regulated System

India may adopt a regulated framework involving:

• licensing of genuine operators,
• mandatory KYC verification,
• spending and deposit limits,
• age restrictions,
• responsible gaming mechanisms.

Strengthen Cyber Enforcement

Authorities should improve:

• real-time monitoring,
• AI-based fraud detection,
• coordination between States and the Centre,
• international cooperation against offshore networks.

Enhance Consumer Protection

A stronger framework should include:

• grievance redressal systems,
• data privacy safeguards,
• transparency in gaming algorithms,
• warning systems against addictive behaviour.

Public Awareness

Awareness campaigns should educate users regarding:

• financial risks,
• fraudulent platforms,
• addiction-related harms,
• safe digital practices.

Productive Use of Revenue

Tax revenue collected from regulated gaming can be utilized for:

• addiction counselling,
• cybercrime control,
• public awareness programmes,
• digital literacy initiatives.

GEOGRAPHY

2. Global Housing Crisis: A Challenge to Inclusive Urban Growth

Context: The World Cities Report 2026 titled “The Global Housing Crisis: Pathways to Action”, published by the UN-Habitat, revealed that nearly 40% of the world’s population is experiencing a severe housing crisis.

Understanding the Global Housing Crisis

The global housing crisis refers to the increasing inability of people to obtain adequate, affordable, secure, and climate-resilient housing. The crisis is reflected in:

• shortage of affordable housing,
• rising house and rental prices,
• growth of slums and informal settlements,
• homelessness and forced displacement,
• inadequate access to sanitation, water, and urban services,
• growing climate vulnerability of housing infrastructure.

Key Findings of the Report

Massive Scale of Housing Shortage

• Around 3.4 billion people worldwide do not have access to adequate housing, while more than 1.1 billion people live in slums and informal settlements.
• The global housing shortage increased from 251 million housing units in 2010 to 288 million units in 2023.

Housing Affordability Crisis

• The global house price-to-income ratio rose significantly from 9.5 in 2010 to 11.7 in 2023, indicating declining affordability.
• Central and Southern Asia recorded the steepest rise, reaching a ratio of 16.8. Additionally, nearly 44% of households globally spend over 30% of their income on housing-related expenses.

Rapid Urbanisation Increasing Pressure

• Urban centres are expected to accommodate nearly 2 billion additional residents by 2050. Rising land prices and poor urban planning are worsening housing shortages in cities.

Rising Displacement and Homelessness

• Approximately 123.2 million people were forcibly displaced worldwide in 2024 because of conflict, violence, and disasters.
• UN-Habitat estimated that nearly 64 million people were displaced from informal settlements between 2003 and 2023 due to urban development projects.

Climate Change and Housing Vulnerability

• Climate-related disasters could destroy nearly 167 million homes by 2040. Natural disasters alone caused economic losses of about US$280 billion in 2023.
• Buildings contribute nearly 37% of global greenhouse gas emissions, while housing accounts for around 17–21% of emissions.

Housing Situation in India

Declining Affordable Housing Supply

• The share of affordable housing projects in India’s major cities declined sharply from 52% in 2018 to only 17% in 2025, as builders increasingly focused on premium housing projects for higher profits.
• Cities like Mumbai and Delhi have very high house price-to-income ratios, making home ownership difficult for middle-income families.

Growth of Informal Settlements

• Continuous migration toward urban centres has intensified pressure on slums and informal housing systems.

Major Causes of the Housing Crisis

Rapid Urbanisation

• Large-scale migration to cities has increased housing demand much faster than housing supply.

Rising Land Costs

• Increasing urban land prices have significantly raised the cost of housing construction.

Growing Economic Inequality

• Income disparities have reduced affordability for lower and middle-income groups. Migrants, women, and informal workers are among the most affected groups.

Financialisation of Housing

• Housing is increasingly treated as an investment and profit-generating asset rather than a basic social necessity. Speculative investments and corporate ownership are driving prices beyond the reach of ordinary citizens.

Weak Housing Governance

• Poor coordination between national and local governments often weakens implementation of housing policies. Many policies fail to adequately address affordability, tenure security, and sustainability.

Recommendations Suggested in the Report

Recognise Housing as a Public Good

• Governments should treat housing as a human right and social necessity instead of merely a market commodity.

Upgrade Informal Settlements

• The report recommends participatory in-situ slum redevelopment instead of forced evictions.

Strengthen Local Governments

• Urban local bodies should be empowered financially and administratively to improve housing delivery systems.

Promote Climate-Resilient Housing

• Governments should encourage energy-efficient housing systems and low-carbon construction materials.

Major Affordable Housing Initiatives in India

Valmiki Ambedkar Awas Yojana (VAMBAY)

• Launched in 2001 by the Ministry of Urban Employment and Poverty Alleviation, the scheme aimed to provide housing assistance to Below Poverty Line urban slum dwellers. It was later merged into JNNURM.

Jawaharlal Nehru National Urban Renewal Mission (JNNURM)

Started in 2005 as a flagship urban renewal programme, it included:

• Basic Services to the Urban Poor (BSUP)
• Integrated Housing and Slum Development Programme (IHSDP).

Rajiv Awas Yojana (RAY)

• Launched in 2011 with the goal of creating a slum-free India by integrating slums into the formal urban framework.

Pradhan Mantri Awas Yojana (PMAY)

• Introduced in 2015 under the vision of “Housing for All,” the scheme seeks to provide affordable pucca houses with basic amenities to eligible urban and rural households.

It operates through:

• PMAY-Urban (PMAY-U 2.0)
• PMAY-Gramin (PMAY-G).

Conclusion

• The global housing crisis has emerged as one of the most serious urban development challenges of the 21st century. Rapid urbanisation, rising inequality, unaffordable housing, and climate change are increasing vulnerabilities across societies worldwide.

Addressing this issue requires:

• integrated urban planning,
• greater public investment,
• inclusive housing policies,
• climate-resilient infrastructure development.

Download Pdf | Study Material | Downloads | Daily Quiz  | FREE Youtube Videos