Updated on: Aug 21, 2025 03:33 pm IST
The Online Gaming Bill, passed by the Parliament today, affects India’s $3.8-billion gaming industry led by Dream11, Games24X7 and Mobile Premier League.
The Parliament of India has cleared the online gaming bill to ban real money online games, citing instances of gambling addiction, money laundering and financial frauds.
The move affects India’s $3.8 billion gaming industry, which has drawn global investors and fostered fantasy sports apps like Dream11, Games24X7 and Mobile Premier League. Additionally, Nazara Technologies Ltd.—the only listed gaming firm in India—is weighing a writedown of its stake in PokerBaazi—an online betting app.
The Lok Sabha cleared the Promotion and Regulation of Online Gaming Bill, 2025, on Wednesday. The Rajya Sabha gave its approval on Thursday. The bill, which essentially bans online gaming apps that require users to pay money to win cash, now needs the President’s signature to become a law.
“The government believes that the harms of addiction, financial loss and even extreme consequences such as suicides associated with online money gaming can be prevented by prevention of such activities,” according to a media statement released by the government.
“Additionally, online money gaming platforms are often misused for financial fraud, money laundering, terror financing and messaging activity that compromise national security,” it added.
Against that backdrop, here’s the Online Gaming Bill explained in five points:
1. Promotion and recognition of esports
Under the Online Gaming Bill, esports will be recognised as a legitimate form of competitive sport in India. The Union Ministry of Sports will frame guidelines and standards for conduct of esports events in India, as well as establishment of training academies, research centres and technology platforms. The bill also provides for incentive schemes, awareness campaigns and integration of esports into broader sports policy.
2. Promotion of social and educational games
The Online Gaming Bill allows the government to “recognise, categorise, and register” online social games. That will be brought on by building platforms for development and distribution of safe, age-appropriate social and educational games. A special emphasis will be laid on cultural and educational games aligned with Indian values.
3. Prohibition of harmful online money games
The Online Gaming Bill proposes a complete ban on offering, operating or facilitating online money games, irrespective of whether based on skill, chance, or both. These games cannot be advertised or promoted on any form of media. Banks and payment systems are barred from processing payments.
The online money games, which are currently operational in the country, will be blocked under the Information Technology Act, 2000.
4. Establishment of an online gaming authority
The bill proposes to set up a national online gaming authority for oversight. Its functions would include:
- Categorisation and registration of online games
- Determination of whether a game qualifies as a money game.
- Handling complaints and grievances related to online games.
This body will be responsible for issuing guidelines, orders and codes of practice to ensure compliance with the laws of the land.
5. Offences & Penalties
- The bill proposes imprisonment up to three years and/or fine of up to ₹1 crore for entities involved in or facilitating online money gaming.
- Advertising such games will attract a penalty of ₹50 lakh or up to two years of imprisonment.
- Any financial transaction related to money games will result in imprisonment of up to three years and/or a fine of up to ₹1 crore.
- A repeat offence would attract enhanced penalties, including jail for 3-5 years and fine of up to ₹2 crore.
Indian lawmakers feel an outright ban on online money gaming would be more effective than regulation, considering the financial ruin caused to many households through “manipulative design features and addictive algorithms”, according to the media statement.
Several online platforms were found to have links to “financial fraud, money laundering, tax evasion and terror funding”. Also, with many of the operators based offshore, it becomes difficult to enforce state rules and taxes, the lawmakers said.
