Parliament approves Online Gaming Act of 2025, potentially prohibiting real money gaming platforms such as Dream11 and Winzo

In a significant move aimed at regulating the online gaming industry, the Promotion and Regulation of Online Gaming Bill, 2025 has been introduced in the Lok Sabha by Union Minister for Electronics and Information Technology Ashwini Vaishnaw.

The Bill defines an "online money game" as one played by paying fees, depositing money, or staking other assets with the expectation of winning monetary returns, regardless of whether it is based on skill, chance, or both. The Bill proposes a comprehensive ban on such games. However, subscription-based entertainment and skill-based formats would be allowed so long as no monetary returns are promised.

The Bill is backed by the President's recommendation under Article 117 of the Constitution and seeks to address fragmented regulation, safeguard consumers, and establish India as a global hub for digital innovation in non-monetary gaming. By distinguishing between money games and eSports, the government has signaled its intent to both restrict exploitative practices and promote competitive gaming.

The central government is empowered to recognise e-sports as legitimate sports, promote training academies, research centres, and incentive schemes, and similarly support online social games for educational and recreational purposes. The Joint Gambling Authority of the Federal States (Gemeinsame Glücksspielbehörde der Länder, GGL), established after the enactment of the 2025 law, will be responsible for game classification, platform registration, and policy creation for permissible segments like eSports and social games.

Violators offering such games could face up to three years in prison or fines of as much as Rs 1 crore, while those advertising them could face two years of imprisonment and fines up to Rs 50 lakh. Companies and their directors can also be held liable if offences occur with their consent or due to negligence. The Bill makes offences under Sections 5 and 7 (operation and financial facilitation of money games) cognizable and non-bailable.

The financial memorandum estimates Rs 50 crore in initial expenditure and Rs 20 crore annually for setting up the new regulatory authority. Critics argue that a blanket prohibition could drive users to illegal offshore networks and unregulated operators, potentially undermining the government's efforts to protect consumers and ensure fair play.

Supporters of the Bill argue that it prioritizes public welfare, stating that online money games have left children and youth vulnerable to exploitation and serious mental health risks. Preetha Reddy, Executive Vice Chairperson of Apollo Hospitals, wrote that this step puts wellbeing first, ensuring our future generations grow with balance and dignity.

The sector, valued at more than Rs 2 lakh crore, generated Rs 31,000 crore in annual revenue and contributed over Rs 20,000 crore in taxes, and had attracted more than Rs 25,000 crore in foreign direct investment by mid-2022. The bodies caution that the prohibition on online games involving monetary stakes could destroy over 2 lakh jobs, result in over 400 companies shutting down, and weaken India's position as a digital innovator.

Banks and financial institutions enabling such transactions would also be penalised. The Bill cites concerns about addiction among children and young adults, financial distress, suicides, threats to national security, public order, and financial sovereignty, linking online money games to money laundering, tax evasion, and financing of terrorism.

Players themselves would not face criminal liability, the government said, framing them as victims rather than offenders. The Bill is currently under discussion and will require further debate and approval before it becomes law.

Parliament approves Online Gaming Act of 2025, potentially prohibiting real money gaming platforms such as Dream11 and Winzo