Lok Sabha clears Online Gaming Bill 2025, ends money play in India

The Lok Sabha in India has passed the draft Promotion and Regulation of Online Gaming Bill, 2025, introducing a national legal framework to ban online money games and regulate e-sports and online social gaming. The Bill, introduced by Electronics and Information Technology Minister Ashwini Vaishnaw earlier in the day, was cleared by voice vote after a brief debate.

The bill drafted by the Union Ministry of Electronics and Information Technology (MeitY) aims to curb rising cases of online gambling addiction, financial fraud, and money laundering. It prohibits all forms of online money games, irrespective of whether they are based on skill or chance, while promoting structured development of skill-based, educational, and recreational games through a central regulatory mechanism.

The Bill imposes a complete ban on online money games—defined as any online game involving a monetary stake in exchange for expected winnings. This includes fantasy sports platforms, card games such as poker and rummy, and digital lotteries.

It outlaws all forms of advertisement or promotional content related to such games, including those disseminated via social media, television, and celebrity endorsements. Banks and financial institutions are barred from facilitating transactions involving such games.

Violations can attract imprisonment of up to three years and/or a fine of up to Rs 1 crore. Repeat offenders can face jail terms ranging from three to five years and fines up to Rs 2 crore. Advertisers promoting such games can face up to two years of imprisonment or fines up to Rs 50 lakh for first-time offences.

Further, the offences under Sections 5 (ban on online money games) and 7 (ban on financial facilitation) are classified as cognisable and non-bailable.

The Bill allows for digital platforms or content related to banned games to be blocked under the provisions of the Information Technology Act, 2000.

Central Authority for Classification and Oversight

To operationalise the law, the bill proposes setting up an Online Gaming Authority that will register and classify games into specific categories such as e-sports, social games, or money games. The Authority will also issue compliance directions, publish regulatory guidelines, and respond to user complaints.

It will be empowered to determine whether a particular game qualifies as an online money game, either based on applications or its assessment. It will conduct inquiries, take enforcement action where necessary, and address grievances.

For its setup and operation, the government has earmarked Rs 50 crore as initial capital expenditure and an annual recurring budget of Rs 20 crore.

Encouragement for E-sports and Social Gaming

The Bill encourages the development of e-sports, which are defined as skill-based, rule-governed digital competitions that do not involve monetary wagering. Similarly, it recognises online social games that are used for recreation, learning or skill-building and which do not involve monetary stakes.

To foster these sectors, the bill proposes to support the creation of training academies, game development centres, and research institutions. It will also conduct public awareness campaigns and work with States and institutions to integrate social and educational gaming into broader digital engagement and sports initiatives.

Administrative Powers and Enforcement Mechanisms

The Bill grants significant enforcement powers to authorities. Authorised officers will be allowed to search physical or digital spaces and arrest individuals without a warrant if they are suspected of violating provisions of the Act. They may override access controls to inspect or seize digital storage or platforms used for illegal gaming activities.

In cases where companies are found guilty of offences under the law, directors, managers, or officers responsible for the conduct of the business will also be held liable. However, those who can prove that the offence occurred without their knowledge or despite due diligence may be exempted. Non-executive or independent directors not involved in day-to-day decisions are also protected from prosecution.

Any individual or entity that fails to comply with directives from the government or the Online Gaming Authority may face penalties of up to Rs 10 lakh. This could include suspension of registration and a ban on offering or promoting any online game for a duration determined by the regulator.

Actions taken in good faith by the Central Government, the Authority, or its officers are protected under the Act, and the provisions of this law will have an overriding effect in case of any conflict with other laws.

The Central Government has also been empowered to make rules for the classification, regulation, and promotion of different segments of the online gaming industry. This includes framing procedures for recognition and oversight of games, defining qualifications for Authority members, and enabling administrative operations.

A National Law for a Cross-Border Problem

The government has justified the need for central legislation by citing the widespread and cross-border nature of online gaming operations, many of which are run from offshore jurisdictions and remain outside the purview of Indian laws. It argued that State-level regulations have been inconsistent and ineffective, often leading to enforcement gaps.

Vaishnaw said the Bill aims to protect youth and economically vulnerable populations from “predatory online Real Money Gaming apps that manipulate them through misleading monetary return promises,” and which have pushed several families into financial distress.

The Bill will now move to the Rajya Sabha for further consideration.