NEW DELHI: The government on Wednesday moved a legislation in the Lok Sabha to ban online games played with money as it looks to check rising instances of addiction, money laundering, and financial frauds through such applications.
The Promotion and Regulation of Online Gaming Bill, 2025 also seeks to prohibit advertisement related to online money games as well as bars banks and financial institutions from facilitating or transferring funds for any of such games.
Online money game is one played by a user by depositing money in expectation of winning monetary and other enrichment.
Union Minister Ashwini Vaishnaw introduced the bill in the Lok Sabha amid sloganeering by MPs belonging to opposition parties in protest against alleged irregularities in electoral roll revision in Bihar.
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.
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 fine up to Rs 1 crore.
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.
Importantly, offences under key sections are sought to be made cognizable and non-bailable.
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.
A senior government source said the bill has been brought as there is a realisation that online real money gaming has become a major problem for society. The government decided to keep the welfare of people above revenue loss from its ban.
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.
The bill also recommends a regulator for e-sports, 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.
All advertising and promotion of money games across all forms of media will be banned and so will be financial transactions linked to online money games. Banks and payment systems will be barred from processing such payments.
The objectives of the legislation are “to promote and regulate the online gaming sector, including e-sports, educational games and social gaming” as also to “provide for the appointment of an Authority for coordinated policy support, strategic development and regulatory oversight of the sector”.
It “prohibit(s) the offering, operation, facilitation, advertisement, promotion and participation in online money games through any computer resource, mobile device or the internet, particularly where such activities operate across state borders or from foreign jurisdictions; to protect individuals, especially youth and vulnerable populations, from the adverse social, economic, psychological and privacy-related impacts of such games”.
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”.
The government believes that harms of addiction, financial losses, and even extreme consequences such as suicides associated with online money gaming can be prevented by prohibition of such activities.
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.
