The Lok Sabha has approved the Promotion and Regulation of Online Gaming Bill, 2025, banning money-based online games while promoting e-sports, educational, and social gaming. The Bill also sets up a central authority to regulate and oversee the online gaming ecosystem in India.
New Delhi: On August 20, the Lok Sabha on Wednesday passed the Promotion and Regulation of Online Gaming Bill, 2025, a major step aimed at transforming India’s online gaming sector. This new legislation seeks to regulate e-sports, educational, and social games, while banning online games that involve betting or monetary stakes.
The Bill, approved by the Cabinet just a day earlier, was introduced in Parliament by IT Minister Ashwini Vaishnaw. It is now set to be debated in the Rajya Sabha, and once it receives the President’s approval, it will become law.
Under the proposed legislation, a central regulatory authority will be created to monitor compliance, help in policy-making, and encourage innovation in the gaming industry.
According to the financial memorandum, the authority will start with an initial capital expenditure of around Rs 50 crore and will have an annual recurring cost of Rs 20 crore, funded from the Consolidated Fund of India.
One of the significant features of the Bill is that it formally recognises e-sports as a legitimate competitive sport. The government plans to support the development of training academies, research centres, and technology platforms to promote e-sports.
Social and educational games will also get a boost, with measures ensuring that content is age-appropriate and integrated with skill development and learning initiatives.
At the same time, the legislation takes a firm stand against money-based online games. If the Bill becomes law, advertisements promoting such games will be completely banned across television, print, digital platforms, and even through influencers or celebrity endorsements.
Penalties for breaking these rules include imprisonment of up to two years, fines up to Rs 50 lakh, or both. For repeat violations, punishment may increase to three years in jail and fines up to Rs 1 crore.
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The Bill specifically states:
“Any person who makes or causes to make advertisement in any media, in contravention of section 6, shall be punished with imprisonment for a term which may extend to two years or with fine which may extend to fifty lakh rupees or with both.”
Financial institutions and intermediaries will also be prohibited from facilitating payments for money-gaming services. Violations under this provision are considered cognizable and non-bailable offences.
The government has defended the ban citing concerns over fraud, money laundering, tax evasion, and the possibility of terrorist financing through offshore gaming platforms.
The Statement of Objects and Reasons of the Bill points out that manipulative algorithms and addictive game designs often lead to compulsive behaviour, financial losses, and mental health problems, particularly among young people and vulnerable groups.
The Bill also grants investigative powers to authorities to search, seize, and block the operations of money-gaming platforms, whether physical or digital, without a warrant. Non-compliant platforms may also be blocked under the Information Technology Act, 2000.
With the Presidential recommendation already secured under Article 117 of the Constitution, the Bill is scheduled for detailed discussions in both Houses of Parliament.
If enacted, it will represent a major policy shift, positioning India as a global leader in regulated online gaming while firmly closing avenues for money-based games.
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