Offences and Penalties

Chapter V provides the penal framework. Section 9 prescribes graded punishments: up to three years’ imprisonment or ₹1 crore fine (or both) for offering online money-gaming services (Section 5) or facilitating transactions (Section 7); up to two years or ₹50 lakh (or both) for advertising (Section 6). Repeat offences escalate: operating/facilitating attracts three to five years and ₹1–2 crore; repeat advertising attracts two to three years and ₹50 lakh–₹1 crore. Section 10 declares offences under Sections 5 and 7 as cognizable and non-bailable. Section 11 addresses offences by companies: persons in charge are liable unless they prove lack of knowledge or due diligence; consent/connivance/neglect fixes liability on directors/managers, with a safeguard for independent/non-executive directors. Section 12 provides a civil-style penalty (up to ₹10 lakh) and regulatory consequences—suspension/cancellation of registration and prohibition from offering/facilitating/promoting games—for non-compliance with directions issued under Section 8, with an opportunity of hearing. This chapter equips the law with stringent, enforceable consequences across supply, adtech and payments.