Lok Sabha Approves Bill to Regulate Online Gaming and Ban Money-Based Games in India

 Lok Sabha has recently approved the Promotion and Regulation of Online Gaming Bill, 2025, marking a significant step toward regulating India’s rapidly expanding online gaming industry. The legislation seeks to promote e-sports, casual, educational, and social games, while firmly prohibiting online money games that involve financial stakes.

The Bill, introduced by the Minister of Information Technology, Ashwini Vaishnaw, addresses the challenges and risks posed by online money games, which have raised concerns regarding transparency, gambler welfare, and national security issues such as money laundering and the funding of illegal activities.
Vaishnaw emphasized the government’s intention to support the growth of the esports sector and casual gaming, which contribute positively to entertainment and skill development. However, he underscored the need to curb the negative impact of money-based online games, which have adversely affected many families.
To enforce the new rules, the Bill proposes establishing a central regulatory body tasked with overseeing the compliance of online gaming platforms and facilitating policy implementation. The regulatory authority will be funded through the Consolidated Fund of India, with an initial capital outlay of approximately ₹50 crore and an annual budget of ₹20 crore.

The legislation formally recognizes esports as a legitimate competitive sport, encouraging government support for training facilities, research centers, and technology infrastructure to boost its development. Additionally, safeguards are included to ensure educational and social gaming content is appropriate for all age groups and can serve as a tool for learning and skill enhancement.
At the same time, the Bill imposes strict restrictions on games involving monetary stakes. It bans advertisements promoting such games across all media, including television, print, digital platforms, and endorsements by influencers or celebrities. Penalties for violations are severe, with imprisonment ranging up to two years and fines up to ₹50 lakh. Repeat offenders face harsher punishments, including imprisonment of up to three years and fines reaching ₹1 crore.

Further provisions restrict financial institutions and intermediaries from facilitating transactions related to online money gaming. Offences under these provisions are classified as cognizable and non-bailable, reflecting the government’s tough stance.
The Bill highlights risks associated with money gaming such as fraud, tax evasion, and links to terrorism financing through offshore platforms. It also draws attention to manipulative algorithms and addictive features that contribute to compulsive behavior, financial losses, and mental health impacts, particularly among young and vulnerable individuals.

In order to enable effective enforcement, designated authorities will be empowered to conduct searches, seize assets, and block the operations of non-compliant money gaming platforms without requiring a warrant. The Bill also authorizes disrupting such platforms under the Information Technology Act, 2000.
Following the Lok Sabha’s approval, the Bill will move to the Rajya Sabha for further discussion. Once it receives Presidential assent, it will become law. With these measures, India positions itself to become a global leader in regulated online gaming, while decisively cracking down on the unregulated money gaming sector.

This legislative move is expected to impact online gaming platforms, payment ecosystems, and advertising, potentially reshaping the industry in the country.
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