On Wednesday, Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, introduced the Promotion and Regulation of Online Gaming Bill, 2025 in the Lok Sabha. The legislation seeks to prohibit “online money games,” impose strict penalties on violators, and establish a regulatory authority to oversee compliance.
The Bill defines an “online money game” as any digital game, whether based on chance, skill, or a combination of both, played upon payment of fees, deposits, or stakes in anticipation of monetary or material gain. Significantly, e-sports are expressly excluded from the ambit of prohibition.
Under the proposed law, offering online money gaming services in contravention of its provisions may attract imprisonment of up to three years, a fine of up to ₹1 crore, or both. Similarly, those promoting such games through advertisements could face imprisonment of up to two years, a fine of up to ₹50 lakh, or both. The Bill also authorizes the government to block access to any platform or service found to be in violation, drawing enforcement powers from Section 69A of the Information Technology Act, 2000.
The legislation further envisages the creation of a Central Authority vested with suo motu powers to determine whether a particular game qualifies as an “online money game.” It empowers authorized officers with extensive investigative authority, including the power to search, seize, and arrest without warrant if there exists “reasonable suspicion” of an offence being committed. Notably, the framework has extraterritorial reach, extending to services operated from outside India but accessible to Indian users.
While seeking to prohibit online money games, the Bill provides a carve-out for e-sports, which are to be recognized under the forthcoming National Sports Governance Act, 2025 as legitimate sporting activities. Outcomes in such games must depend solely on skill-based factors such as agility, strategy, dexterity, or mental acuity. Participation fees for administrative costs and performance-based prize money are permitted; however, betting, wagering, or staking, by players or third parties, are strictly prohibited. The Centre may also promote “online social games” designed for educational and recreational purposes, provided they do not involve wagering elements.
In its Statement of Objects and Reasons, the Government highlighted the adverse societal impact of online money games, noting their proliferation through mobile devices and the internet has resulted in grave social, economic, and psychological harm. Such platforms have been associated with compulsive and addictive behaviour, financial distress, mental health concerns, and incidents of fraud and exploitation. In extreme cases, links to money laundering, terror financing, and threats to national security have also been reported.
Against this backdrop, the Bill underscores the need for a robust regulatory framework that not only safeguards citizens from exploitation and harm but also fosters innovation, responsible growth, and a safer digital environment in the online gaming sector.
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