The government on Wednesday passed the Promotion and Regulation of Online Gaming Bill, 2025 in the Lok Sabha, effectively banning real-money gaming in the country while paving the way for the promotion of e-sports and social gaming.
According to official estimates, nearly 45 crore Indians lose around ₹20,000 crore every year through online money gaming platforms. Citing these alarming figures, a senior government source said the decision was taken to safeguard public welfare, even though the exchequer will lose a share of revenue from the industry.
“Every parliamentarian highlighted the harmful effects of online money gaming. Faced with a choice between revenue and social well-being, the government chose to protect society,” the source said.
Focus on E-Sports and Social Gaming
The legislation aims to promote two-thirds of the industry — e-sports and online social gaming — which will now receive dedicated budget allocations, new schemes, and a regulatory authority for their growth. The government believes this move will create jobs and open up new opportunities in the digital gaming sector.
Strict Penalties for Money Gaming
Under the new law, anyone found running an online real-money gaming service could face up to three years in prison, a fine of ₹1 crore, or both. Advertising such platforms will also attract penalties, including two years of imprisonment and fines of up to ₹50 lakh.
Importantly, the bill does not penalize players. Instead, it targets platform operators, transaction facilitators, and advertisers who promote money-based gaming.
Curbing Loopholes
Officials noted that many platforms have been operating under the guise of “games of skill” to bypass existing restrictions. Previous attempts, including higher GST rates and proposals for a central regulator, failed to address the problem due to industry pushback and conflicts of interest.
“The provisions in this bill are the result of three-and-a-half years of effort and numerous public complaints. The loopholes that companies exploited will no longer work,” the source added.
With the passage of this legislation, India has drawn a clear line between entertainment-driven gaming and gambling-style platforms, signaling a strong push toward responsible digital gaming practices.
