Online Gaming Bill: Lok Sabha passes bill to ban online games played with money
New Delhi, Aug 20 (PTI): The Lok Sabha on Wednesday passed the Promotion and Regulation of Online Gaming Bill, 2025, which seeks to ban the offering, facilitation, and advertisement of online games played with real money. The bill was introduced earlier in the day by Union Minister Ashwini Vaishnaw and was passed without debate amid opposition protests over the revision of electoral rolls in Bihar.
The legislation targets a complete ban on online money gaming activities such as fantasy sports, online poker, rummy, and lotteries—regardless of whether they are based on skill or chance. It aims to address growing concerns around addiction, financial fraud, money laundering, and national security threats linked to these platforms.
Under the bill, offering or enabling real-money games could lead to imprisonment of up to three years and/or a fine of up to ₹1 crore. Advertising such games may attract a jail term of up to two years and a fine of up to ₹50 lakh. Repeat offenders will face harsher penalties, including up to five years in jail and fines up to ₹2 crore. These offences are proposed to be cognisable and non-bailable.
The bill also bans all advertisements related to online money games and prohibits banks and payment systems from processing related financial transactions. The definition of an online money game includes any game played by depositing money in the expectation of winning monetary or other rewards.
Union Minister Vaishnaw said the government is committed to promoting e-sports, educational games, and social gaming, and will set up a regulatory authority to oversee and support these sectors. He noted that while digital gaming has potential for positive impact, the rise of money-based games has resulted in serious psychological and financial harm, especially among youth and vulnerable individuals.
Speaker Om Birla urged opposition members to engage in the discussion, noting that real-money gaming platforms have led to family breakdowns and ruined lives. Despite this appeal, the bill was passed by a voice vote as opposition MPs continued their protests.
The industry has raised concerns over the bill. Bodies like the All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS) have written to Home Minister Amit Shah warning that the ban could harm a growing sector valued at over ₹2 lakh crore, which contributes ₹20,000 crore in direct and indirect taxes and is projected to double by 2028.
The government, however, believes the social costs outweigh the potential revenue. It argues that the legislation is necessary to protect individuals from addiction and financial ruin and to prevent the misuse of gaming platforms for illicit activities, including terror financing and data breaches.
The bill aligns with existing legal frameworks governing physical-world gambling and betting, such as the Bharatiya Nyaya Sanhita, 2023, and various state laws. It recognises e-sports as a legitimate competitive sport and tasks the Ministry of Sports with establishing guidelines for its regulation. The Ministry of Electronics and IT (MeitY) and the Ministry of Information and Broadcasting will support educational and social games that promote cultural values, learning, and skill development.
The legislation will now move to the Rajya Sabha for further consideration and, once enacted, will mark a significant shift in India’s regulation of the digital gaming ecosystem.
