India Introduces Bill to Ban Real-Money Online Gaming

India is preparing for a major overhaul of its online gaming sector as the Promotion and Regulation of Online Gaming Bill, 2025 makes its way to Parliament. Approved by the Union Cabinet under the leadership of Prime Minister Narendra Modi, the bill proposes a nationwide ban on real-money online games, bringing long-awaited clarity to a rapidly expanding but fragmented industry.

The bill was formally introduced in the Lok Sabha by Union Minister for Electronics and Information Technology Ashwini Vaishnaw. Opposition members voiced protests during the session, prompting an early adjournment, but the introduction signaled the government’s commitment to swift action.

At its core, the legislation defines an online money game as any digital game where players deposit money or other stakes with the expectation of winning a monetary reward. Crucially, the proposal exempts  games that do not involve financial incentives, ensuring that those sectors can continue to operate under a regulated environment.

According to S Krishnan, Secretary at the Ministry of Electronics and Information Technology (MeitY), the bill reflects a careful balance between addressing harmful practices and supporting innovation. “This is a societal decision,” Krishnan said, noting that the bill recognizes the creative value of games that are not tied to monetary returns. He explained that an independent authority will be established to classify games and manage compliance, giving both operators and users a clear legal framework.

The bill introduces firm penalties for companies and individuals profiting from real-money online games //krikya588.com/in/news-articles/#. Operators running such platforms could face up to three years in prison or a fine of up to ₹1 crore (around $120,000). Those advertising or promoting these platforms risk two years of imprisonment and fines up to ₹50 lakh. Banks and financial institutions that process payments for these services will also be liable for similar penalties.

Repeat offenders will face harsher consequences, with potential five-year prison terms and increased financial penalties. Significantly, the legislation spares players from criminal liability, viewing them as victims of a predatory system rather than as offenders.

Officials highlighted that the bill addresses pressing concerns over addiction, fraud, and mental health issues, which have grown alongside the popularity of online money games. Cases of financial distress, and even suicides tied to such games, were cited during cabinet discussions.

Public health advocates have welcomed the proposal. Preetha Reddy, Executive Vice Chairperson of Apollo Hospitals, wrote on X (formerly Twitter), “The new Online Gaming Bill is more than regulation, it is protection. Online money games have left children and youth vulnerable to exploitation and serious mental health risks. This step puts wellbeing first, ensuring our future generations grow with balance and dignity.”

However, the gaming industry warns of serious economic fallout if the bill becomes law. In a joint appeal to Home Minister Amit Shah, the All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and the Federation of India Fantasy Sports (FIFS) stressed that the ban could result in the loss of over 2 lakh jobs, the closure of more than 400 companies, and significant setbacks to India’s digital economy. They also warned that such a sweeping ban could push millions of users toward illegal or offshore platforms, creating further risks and eliminating a tax-generating industry.

The organizations pointed to the sector’s rapid growth, with revenues reaching ₹31,000 crore annually and over ₹20,000 crore in taxes contributed. The industry, valued at ₹2 lakh crore, has been expanding at a rate of 20% CAGR and was on track to double by 2028. India’s gamer population has surged from 36 crore in 2020 to over 50 crore in 2024, while foreign direct investment in the sector exceeded ₹25,000 crore by mid-2022.

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If Parliament approves the bill, it will mark the first national law governing online gaming in India. By creating a centralized framework, the legislation aims to curb the risks tied to real-money gaming while enabling safer growth in eSports and digital entertainment.

Sources: , timesofindia.indiatimes.com, August 21, 2025.