The Promotion and Regulation of Online Gaming Bill, 2025, recently passed by the Indian Parliament, marks a significant turning point in the regulation of the country’s burgeoning online gaming sector. Officially cleared by the Union Cabinet on August 19 and passed by the Lok Sabha on August 20, this law aims to balance the promotion of legitimate e-sports and social gaming while imposing a firm prohibition on online money games, which involve real money wagers or stakes.
The bill distinctly separates permissible online games, such as skill-based e-sports and social or educational games, from online money games that entail financial deposits with the expectation of winnings. It expressly bans offering, facilitating, or promoting online money games, including their advertisement and financial transactions linked to such platforms. This sweeping prohibition extends to domestic and foreign entities providing such services accessible within India.
To enforce these regulations, the bill establishes a specialized regulatory authority tasked with categorizing games, overseeing compliance, handling complaints, and issuing guidelines. This body will ensure that the sector grows responsibly while safeguarding public interests, including the protection of youth and vulnerable populations from the adverse economic and psychological effects of money gaming.
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Penalties under the legislation are stringent. Violators involved in or promoting online money gaming face imprisonment up to three years and fines up to ₹1 crore, with harsher punishments for repeat offences. Advertising money games can lead to fines up to ₹50 lakh and imprisonment for up to two years.
While the bill is poised to promote e-sports as a legitimate competitive sport with supportive frameworks, it has drawn criticism from industry stakeholders who warn about the potential impact on jobs, startups, and investments. They argue that the ban might drive millions of Indian gamers to unregulated offshore platforms, which pose higher risks without consumer protections.
Overall, the 2025 Online Gaming Bill reflects the government’s intent to foster a safe, innovative, and economically beneficial gaming ecosystem in India while decisively curtailing the risks related to online gambling and money games.
