The Indian government has unveiled sweeping legislation to reshape the online gaming landscape, proposing strict curbs on real-money gaming while simultaneously promoting e-sports and social gaming. The Promotion and Regulation of Online Gaming Bill, 2025, was introduced in the Lok Sabha by Electronics and IT Minister Ashwini Vaishnaw on Tuesday, August 19, marking a major policy shift in how the country handles one of its fastest-growing digital industries.
Blanket Prohibition on Money Games
According to Newsonair, at the heart of the Bill is a complete ban on real-money gaming platforms. The legislation states that no person “shall offer, aid, abet, induce or otherwise indulge or engage in” the provision of such services. This prohibition applies regardless of whether the game is based on skill, chance, or a mix of both—erasing a distinction that industry stakeholders have long lobbied to maintain.
Violations could bring serious consequences: imprisonment of up to three years, fines reaching one crore rupees, or both. Promoters and celebrity endorsers face penalties as well, with the draft law prescribing up to two years in jail and fines of up to 50 lakh rupees. Financial institutions would also be barred from processing transactions tied to banned platforms.
The government cited the risks of financial fraud, money laundering, tax evasion, and even terror financing as justification for the strict measures. Officials also pointed to addictive algorithms and manipulative design features that drive compulsive behavior and financial losses among players.
While the Bill is tough on real-money gaming, it is designed to encourage other forms of digital play. Competitive e-sports and registered online social games are exempt from the restrictions and will be promoted through new state-backed initiatives.
The draft legislation proposes the creation of an Online Gaming Authority tasked with oversight, categorisation, and registration of permissible games. The authority will support policy development and facilitate the growth of recreational and educational games that may charge subscription or access fees but do not involve wagering.
“This Bill is intended to protect individuals, especially youth and vulnerable populations, from the adverse social, economic, psychological and privacy-related impacts of such games,” Vaishnaw told Parliament, underscoring the measure’s emphasis on safeguarding young users and families from predatory gaming apps.
Economic and Industry Backlash
The new framework represents a dramatic reversal from the government’s 2023 rules, which leaned toward industry self-regulation but failed to take hold. Since then, officials said, concerns about national security and socio-economic harms have grown more pressing.
The legislation could derail a sector that had been projected to reach $9 billion in market value by 2029. Real-money gaming apps such as Dream11 and Mobile Premier League have attracted significant investor attention, with valuations of $8 billion and $2.5 billion, respectively, and millions of daily users.
Industry associations have warned of severe fallout if the Bill passes as written. In a joint letter to the Home Ministry, the E-Gaming Federation, All India Gaming Federation, and Federation of Indian Fantasy Sports argued that the blanket prohibition would “strike a death knell for this legitimate, job creating industry, and would cause serious harm to Indian users and citizens.”
Parliamentarian Karti Chidambaram also criticized the draft law for bypassing industry consultation, warning it could drive transactions offshore or into unregulated channels such as the dark web.
The Bill introduces unprecedented enforcement powers. It authorises officials to conduct searches and arrests without warrants, both in physical premises and virtual spaces. “Any place” covered under the law includes buildings, vehicles, computer resources, and digital storage devices, with provisions allowing officers to override access controls or security codes.
Government ministries have emphasized that curbing online money games is necessary to address their links to illegal financial activities and to protect public health. A senior official said the decision reflects a “calculated” willingness to accept reduced tax revenue from the sector in favor of broader national interest.
Despite the financial hit, the government remains committed to fostering non-monetary digital entertainment. By elevating e-sports as a legitimate competitive pursuit and encouraging game development, officials hope to redirect the sector’s momentum into safer, socially constructive avenues.
(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)
