Online gaming has grown rapidly in India, but it has also brought challenges like addiction, fraud, and illegal betting. To address these issues, the Lok Sabha passed the “Promotion and Regulation of Online Gaming Bill, 2025″ on August 20, 2025. This is a landmark step in regulating the gaming industry
Highlights of the Online Gaming Bill 2025
Complete Ban on Real-Money Gaming
- Online rummy, poker, fantasy sports with cash stakes, lotteries, betting, and similar money-based games will now be banned
- Advertisements, promotions, and payment gateway support for such games are also prohibited.
Boost to E-Sports and Skill-Based Games
The Bill encourages e-sports, educational games, and casual/social games.
The government aims to create a safe and innovative gaming ecosystem in India.
Establishment of a Central Regulatory Authority
The new authority will:
- Classify games (money-based vs. skill-based)
- Issue licenses to gaming platforms
- Ensure consumer protection and data privacy
- Monitor and regulate responsible gaming practices
Offences and Penalties
Gaming companies, advertisers, and financial facilitators will face strict punishment
First offence: Up to 3 years imprisonment or fine up to ₹1 crore
Repeat offences: 3–5 years imprisonment and fines up to ₹2 crore
Importantly, players will not be punished — penalties apply only to providers and promoters.
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Government’s Objectives
The Bill is designed to:
- Protect youth from addiction and fraud
- Prevent money laundering and terror financing
- Promote a safe, transparent, and innovative gaming industry
Opposition’s Concerns
Several MPs raised concerns that:
- The Bill could impact jobs, startups, and foreign investments in the gaming sector
- It should undergo wider public consultation before becoming law.
Conclusion
With Lok Sabha passing the Bill, it will now move to the Rajya Sabha. Once approved by both Houses and signed by the President, it will become law.
This marks the beginning of a new era for India’s gaming industry — where real-money gaming will be eliminated, and e-sports and skill-based games will be promoted.
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