The Indian Parliament has cleared the Promotion and Regulation of Online Gaming Bill, 2025, a landmark legislation aimed at prohibiting online money games and regulating the digital gaming sector. The Bill, passed in the Rajya Sabha following approval in the Lok Sabha, seeks to protect millions of Indians from financial, social, and psychological harm caused by money-based online gaming while promoting legitimate gaming activities such as e-sports.
Union Minister of Electronics and Information Technology, Ashwini Vaishnaw, introduced the Bill and emphasized that it targets only the segment of online gaming involving monetary stakes. He noted that around 45 crore people have been affected by online money games, leading to cumulative losses of over ₹20,000 crore, mostly impacting middle-income families.
Vaishnaw highlighted that the World Health Organization (WHO) has declared online money gaming a gaming disorder, marking it as a significant public health concern. He further drew attention to the links between these games and offenses such as money laundering and terror financing, urging the need for robust legislation.
While some opposition MPs, including John Brittas, sought to refer the Bill to a Select Committee for further scrutiny, the motion was defeated, and the Bill was passed by voice vote, with opposition members abstaining and raising slogans regarding alleged “Vote Chori” issues.
The Bill defines an “online money game” as any game conducted over the internet where a player pays a fee, deposit, or stake with the expectation of monetary or other rewards, irrespective of whether the game is based on skill, chance, or both. Notably, the definition excludes e-sports, which may be promoted by the government as legitimate competitive activities.
An “online money gaming service” is any service offered by a person to facilitate such games. Under the Bill:
• Persons providing such services may face up to 3 years of imprisonment or a fine of up to ₹1 crore, or both.
• Advertising online money games may attract up to 2 years imprisonment or a fine of ₹50 lakh, or both.
The Bill also proposes the creation of a Central Gaming Authority empowered to investigate potential violations. Authorized officers may have extensive powers, including search, seizure, and arrest without warrant, based on reasonable suspicion of offenses.
Importantly, the law will apply to services operating both within India and from abroad, ensuring cross-border enforcement against illegal online money gaming operations.
While the Bill imposes strict restrictions on online money games, it promotes legitimate gaming activities:
• E-sports competitions are exempted from prohibition if outcomes are determined by physical dexterity, mental agility, strategic thinking, or similar skills, without involving wagers or bets.
• Online social games for educational or recreational purposes may also be recognized, allowing entry fees or subscriptions without any monetary stakes.
This distinction aims to protect the interests of professional gamers, hobbyists, and the broader digital gaming ecosystem, while discouraging exploitative or addictive money-based gaming practices.
The Bill’s Statement of Objects and Reasons emphasizes that the unchecked proliferation of online money games has led to severe social, economic, and psychological consequences across India. These platforms often promote compulsive and addictive behavior, contributing to:
• Financial ruin among individuals and families
• Mental health disorders
• Fraud and exploitation, especially of young and economically vulnerable populations
Celebrity endorsements and aggressive marketing strategies by online gaming companies have exacerbated these problems. By prohibiting money-based games while promoting e-sports and socially beneficial games, the government aims to create a safe, responsible, and innovation-friendly digital environment.
The Bill also underscores the government’s intent to balance regulation with growth, fostering innovation and economic development in the Indian online gaming industry.
The Promotion and Regulation of Online Gaming Bill, 2025 marks a significant step toward tackling gambling-like online activities while encouraging legitimate gaming avenues. With its focus on public health, financial protection, and legal enforcement, the law is expected to have far-reaching implications for both gamers and the rapidly growing digital gaming industry in India.
