Lok Sabha passes bill to ban online games played with money
New Delhi: The Lok Sabha on Wednesday passed a bill to ban the operating, facilitating and advertising of online games played with money, with a view to checking rising instances of addiction, money laundering and financial fraud.
Piloted by Minister of Electronics and Information Technology Ashwini Vaishnaw, the Promotion and Regulation of Online Gaming Bill, 2025 was passed without a debate as Opposition members raised slogans demanding a discussion on the special intensive revision of electoral rolls in Bihar by the Election Commission.
Once the legislation is passed by both Houses of Parliament, offering or facilitating online money gaming will be punishable by imprisonment of up to 3 years and/or a fine of up to Rs 1 crore.
The bill also seeks to prohibit advertisement related to online money games and bars banks and financial institutions from transferring funds for any of such games.
Advertising of money games can attract imprisonment up to two years and/or fine up to Rs 50 lakh. Facilitating financial transactions related to money games can lead to imprisonment up to three years and/or fine up to Rs 1 crore.
Repeat offences attract enhanced penalties, including 3-5 years’ imprisonment and fines up to Rs 2 crore.
Offences under key sections are sought to be made cognizable and non-bailable.
Online money game is one played by a user by depositing money in expectation of winning monetary and other enrichment.
The bill outlaws all online betting and gambling (satta and jua) activities — from online fantasy sports to online gambling (like Poker, Rummy and other Card games) and online lotteries.
Talking to PTI after passage of the bill by the Lower House, Vaishnaw said online money gaming has become a serious social and public health issue, with proven significant negative impact on society.
“Our endeavour is to promote eSports and social gaming, online social gaming, and we would like India to become a game-making hub. For that, a lot of efforts are already being made,” he said.
The minister said so far as digital technologies go, online gaming has emerged as a “major sector” with three main segments.
“Two segments, eSports and online social gaming, are good for society. We are promoting two out of three segments… These two will get legal recognition and they will be promoted. And this bill will create an authority which basically creates programs and schemes which promote eSports and online social gaming,” Vaishnaw said.
The third segment, online money gaming, is causing harm to the society, he said, adding that this has emerged as a major social and public health problem.
Endorsements by top cricketers and film stars have incited interest in real money gaming apps such as fantasy sports betting games offered by Dream11, Games24X7, and Mobile Premier League.
There is a realisation that online gaming has become a major problem for the society, a senior official said, adding that the government has decided to keep the welfare of people above revenue loss from its ban.
According to the bill there will be a regulator for eSports, educational platforms, and social games. It seeks to completely ban offering, operating, or facilitating online money games, irrespective of whether based on skill, chance, or both.
The bill seeks to “ensure the responsible use of digital technologies”, “maintain public order and protect public health” and “safeguard the integrity of financial systems and the security and sovereignty of the state”.
Additionally, online money gaming platforms are often misused for financial fraud, money laundering, terror financing, and messaging activities that compromise national security.
The legislation aligns digital domain with existing laws for corresponding activities in the physical world, wherein betting and gambling are restricted or punishable — such as in the Bharatiya Nyaya Sanhita, 2023 as well as various state government legislations.
The bill recognised e-sports as a legitimate form of competitive sport in India, for which the Ministry of Sports will frame guidelines and standards for conduct of such events.
For online social games, the Ministry of Electronics and IT (MeitY) and the Ministry of Information and Broadcasting (MIB) will extend support to online games that foster educational and cultural values, skill development and social engagement.
Citing “psychological and financial harm” that can be caused by such games, the bill says that no person “shall offer, aid, abet, induce or otherwise indulge or engage in” the offering of online money games and such services.
Industry bodies representing real money game players — India Gaming Federation (AIGF), the E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS) — in a letter to Home Minister Amit Shah raised concerns over the bill saying the online skill gaming industry is a sunrise sector with an enterprise valuation of over Rs 2 lakh crore and annual revenue exceeding Rs 31,000 crore.
It contributes over Rs 20,000 crore in direct and indirect taxes annually and is projected to grow at a 20 per cent compound annual growth rate (CAGR), doubling by 2028, the industry bodies said.
However, another section of the gaming industry, came in support of the bill.
NODWIN Gaming Co-Founder and MD Akshat Rathee said the government’s intent to recognise and promote esports is an encouraging step towards building a structured and globally competitive ecosystem.
Animesh Agarwal, Co-Founder and CEO of S8UL, said by drawing a clear line between skill-based competitive gaming and betting, the bill safeguards the integrity of the ecosystem while opening doors for structured growth.
