The Online Gaming Bill 2025 bans all money-based online games, advertisements, and related financial transactions to curb fraud and addiction. Opposition staged protests, but the government said the move is for the “greater good” of society.
New Delhi: On August 21, Parliament passed the Promotion and Regulation of Online Gaming Bill, 2025 on the last day of the Monsoon Session. The Bill, which was cleared by the Lok Sabha on Wednesday and then by the Rajya Sabha today without discussion, is one of the most important legislations aimed at regulating India’s fast-growing but controversial online gaming industry.
The new law completely bans online money games—that is, games played with cash deposits in the hope of winning money or rewards. This includes fantasy sports, poker, rummy, online lotteries, and other betting platforms.
The government has said that the ban is necessary to stop addiction, suicides, money laundering and large-scale financial frauds linked to such platforms.
The legislation not only prohibits offering these games but also their advertisements. Banks and financial institutions have also been barred from allowing or processing transactions linked to money games.
The Bill was passed in the Rajya Sabha through a voice vote amid protests from the Opposition, who were demanding discussions on other issues such as the Special Intensive Revision (SIR) exercise in Bihar.
Both Houses of Parliament saw disruptions today, but the government pushed through this Bill, calling it necessary for the “greater good” of society.
According to official estimates shared by the Centre, nearly 45 crore Indians lose close to Rs 20,000 crore every year through online money gaming. Presenting the Bill in Parliament, Minister of Electronics and Information Technology Ashwini Vaishnaw said the law will help protect citizens, especially the youth, from exploitation.
The Bill sets out strict punishments for violations. Offering or facilitating money gaming can lead to up to 3 years in jail and/or a fine of Rs 1 crore. Advertising such games can result in 2 years imprisonment and/or Rs 50 lakh fine.
Handling financial transactions connected to money games can also bring 3 years in jail and/or Rs 1 crore fine. Repeat offenders will face 3-5 years imprisonment and fines up to Rs 2 crore. Certain offences have been made cognisable and non-bailable.
Authorities will have powers to search, seize, and arrest without warrant in some cases. Companies will also be held liable, though independent directors not involved in decision-making are protected if they can prove due diligence.
While the law has been hailed by some as a strong step to curb addiction and fraud, the online gaming industry has raised major concerns. Industry leaders have warned that a blanket ban on money games could lead to the closure of nearly 400 companies, loss of over two lakh jobs, and cause serious harm to India’s digital innovation ecosystem.
They said the sector, valued at around Rs 2 lakh crore with annual revenue of Rs 31,000 crore and taxes worth Rs 20,000 crore, faces a “death knell” if the law comes into force.
On this debate, S Krishnan, Secretary at the Ministry of Electronics and Information Technology (MeitY), explained the government’s stand.
He said,
“The government’s approach is to draw a line between innovation and exploitation. The government is of the view that India has the potential to be the gaming hub of the world with many game developers and creators thriving. For this, the legitimate areas within online gaming need to be delineated, recognised and promoted; that is esports and online social games—both educational and recreational. The other real concern is online money gaming. These games involve staking money with uncertain outcomes, often blurring the line between skill and chance. They carry risks of addiction, money laundering and misuse through cryptocurrency. Regular online gaming, esports and creative gaming are not the problem; we want to encourage those.”
Krishnan further underlined the clear direction of the new law. He added,
“Our position is clear: we are drawing a line between promoting innovation and esports on one side and regulating exploitative money gaming on the other. The aim is to safeguard people while also strengthening India’s gaming ecosystem.”
He also confirmed that the government will continue to back esports and recognised creative formats.
“Esports, like chess and other globally recognised games, fall under the Ministry of Youth Affairs and Sports. The government has also been actively promoting the animation, visual effects, gaming and comics (AVGC) sector through initiatives like the Indian Institute of Creative Technologies in Mumbai and the Centres of Excellence under Software Technology Parks of India. These will continue. Our restrictions are aimed only at harmful money games.”
The law marks a turning point in India’s regulation of online gaming. It separates esports and educational/social gaming—seen as positive and legitimate—from exploitative money games that often trap users into addiction and financial losses.
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As Krishnan said,
“Our position is clear: we are drawing a line between promoting innovation and esports on one side and regulating exploitative money gaming on the other.”
