The Lok Sabha on Wednesday cleared the Promotion and Regulation of Online Gaming Bill, 2025. The legislation is seen as a major step, aiming to set rules for India’s fast-growing online gaming industry, encouraging growth in some areas while putting restrictions in others.
The Bill, introduced by Union Minister Ashwini Vaishnaw and later passed in the Lok Sabha, sets out two clear objectives. It encourages the growth of e-sports and educational gaming, while at the same time places a complete ban on real-money online gaming (RMG) — whether the games involve skill or chance.
The new legislation is set to bring big changes to India’s digital entertainment and gaming space. Its impact will be felt across gaming platforms, fintech payment systems, advertisers, influencers, and users.
Objectives of the Bill
The bill establishes a national regulatory framework with four main objectives:
-Encourage growth in esports and social or educational gaming
-Set rules for digital gaming platforms and formally acknowledge legitimate games.
-Ban all types of online real-money gaming, including related ads and payment transfers.
-Safeguard young people and vulnerable groups from financial, psychological, and social risks linked to real-money gaming.
Key Definitions Under the Bill
Online Game: Any digital or electronic game that can be played via the internet or electronic devices.
Online Money Game: A game of skill, chance, or both, where players stake money with the aim of winning cash or equivalent rewards.
E-sports: Recognised competitive digital games based on skill, played without monetary stakes.
Social Games: Games designed for fun, learning, or recreation, with no wagering involved.
Note: E-sports and social games are exempt from the ban, and the Bill promotes their development through institutional support and initiatives.
Prohibited Activities Under the Bill
-Providing or enabling any form of online real-money gaming.
-Advertising or promoting real-money games, including through influencers or celebrities.
-Money transfers for online money games, covering banks and other financial intermediaries.
Penalties for Violations
-Offenders can face up to 3 years in prison.
-Repeat violations may result in fines up to Rs 2 crore.
-The offences are cognizable and non-bailable, meaning authorities can arrest without a warrant.
Enforcement Powers: Search, Seizure, and Monitoring
The Bill gives authorities wide-ranging enforcement powers:
-Conduct searches and make arrests without a warrant.
-Access both physical and digital spaces, including devices, servers, and virtual platforms.
-Block content on platforms violating the ban, under IT Act, Section 69A.
What’s Permitted And Supported?
While the Bill strictly bans real-money gaming, it promotes growth in other areas:
E-sports: Will be officially recognised and supported like traditional sports, with training centres and incentive programmes.
Educational and Social Games: Encouraged for learning, skill development, and entertainment, provided no money is involved.
Understanding the Need for the Bill
In recent years, the online gaming industry in India has witnessed a boom, attracting more than 400 million users. Betting apps, fantasy sports, poker and rummy have particularly registered a rapid growth. According to industry experts, the market size of the sector is more than Rs 20,000 crore, with both startups and global companies making significant investments.
However, the government has raised serious concerns:
-Rising addiction and mental health problems, especially among young people.
-Financial losses affecting vulnerable sections of society.
-Potential links to money laundering, tax evasion, and even terror financing.
Given these “grave social, economic, and psychological consequences,” the Bill argues that mere regulation is not enough, and a ban is the most effective way to protect citizens.
Next Steps
After being introduced in the Lok Sabha, the Bill must be cleared by both Houses of Parliament. Once it becomes law, it will:
-Supersede all current state-level regulations on online gaming.
-Cover both domestic and international platforms serving Indian users.
-Likely face legal challenges from industry players and possibly states, raising concerns over federal overreach and economic impact.
ALSO READ: Lok Sabha Passes Online Gaming Bill 2025 – What’s Allowed And What’s Banned?
