The Promotion and Regulation of Online Gaming Bill, 2025

The Promotion and Regulation of Online Gaming Bill, 2025, was passed by the Lok Sabha on August 20, 2025. Here are the key highlights:

• Prohibition on Online Money Games: The Bill bans all forms of online real-money games, prohibiting any person or company from offering, facilitating, aiding, or advertising such games in India. This includes games where users pay fees or deposit money with the expectation of winning monetary or material rewards, regardless of whether the game is based on skill or chance. Platforms targeted include fantasy sports, poker, rummy, online lotteries, and other similar offerings.

• Distinction for E-sports and Social Gaming: While online money games are strictly prohibited, the legislation specifically aims to promote and support e-sports and social (non-monetary) gaming. The Bill calls for the establishment of a central authority to provide policy support, strategic development, and regulatory oversight for non-monetary gaming and e-sports—seeking to encourage job creation and growth in the digital creator economy.

• Criminal Penalties: Anyone found violating the provisions (offering or facilitating real-money gaming online) may face up to three years in jail and a fine of up to ₹1 crore. Promoters, including influencers and celebrities endorsing banned platforms, can face two years in jail and a fine of up to ₹50 lakh.

• Bar on Financial Transactions: Banks and other financial institutions are prohibited from facilitating payment transactions related to these online money gaming platforms.

• Enforcement Powers: The Bill grants authorities the power to search physical and virtual spaces (including computers and digital storage) and arrest suspects without a warrant if there is reasonable suspicion of a violation.

• Rationale: The government cites mounting concerns over youth addiction, financial losses, money laundering, tax evasion, and even threats to national security allegedly facilitated by the rapid rise of real-money gaming platforms. These measures are seen as a reversal from previous, more industry-friendly regulations that failed to address these social and economic issues.

• Industry Impact: The Bill is forecast to have a significant effect on India's real-money gaming industry, which was expected to be a $9 billion market by 2029. There will be an estimated loss in tax revenue, but the government is prioritizing public health and security considerations.

In summary, the Online Gaming Bill, 2025, establishes a strict nationwide framework that bans real-money online gaming while encouraging socially beneficial and skill-based digital games (like e-sports), aiming to balance innovation with societal protection.

1. https://prsindia.org/files/bills_acts/bills_parliament/2025/Bill_Text-Online_Gaming_Bill_2025.pdf
2. https://www.newsonair.gov.in/ashwini-vaishnaw-introduces-promotion-and-regulation-of-online-gaming-bill-2025-to-safeguard-youth-and-regulate-online-gaming-sector/
3. https://indianexpress.com/article/business/ban-real-money-games-penalties-endorsements-warrantless-searches-india-gaming-bill-10200148/
4. https://www.ndtv.com/india-news/parliament-monsoon-session-live-updates-centres-bills-for-removal-of-pm-chief-ministers-sparks-row-9120792
5. https://caalley.com/news-updates/indian-news/online-gaming-bill-lok-sabha-passes-legislation-to-ban-online-money-games
6. https://www.youtube.com/watch?v=7KOfsiYys6k
7. https://www.indiatoday.in/india-today-insight/story/why-narendra-modi-govt-drew-the-line-with-online-gaming-bill-2774152-2025-08-20
8. https://timesofindia.indiatimes.com/sports/more-sports/others/lok-sabha-passes-online-gaming-bill-2025-real-money-gaming-banned-esports-sector-hails-move/articleshow/123410053.cms
9. https://www.hindustantimes.com/india-news/bill-to-ban-online-games-passed-in-lok-sabha-101755690149084.html