Centre tables online gaming bill: E-sports get a boost, money games face a ban
The Promotion and Regulation of Online Gaming Bill, 2025, seeks to nurture e-sports and social gaming while imposing strict penalties on betting-based platforms
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Published: Aug 20, 2025 2:07 PM | 2 min read
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The Union Government has introduced the Promotion and Regulation of Online Gaming Bill, 2025 in the Lok Sabha, aiming to reshape India’s rapidly growing gaming industry. The Bill proposes a twin approach: nurturing e-sports, educational and social gaming, while drawing a hard line against money-based gaming platforms.
At its core, the legislation recognises the potential of online gaming as a pillar of India’s digital economy. With a young talent pool, a booming domestic market, and global competitiveness on the horizon, e-sports and social games are positioned as legitimate growth sectors. The Bill directs the government to promote e-sports through training academies, incentive schemes, and integration with the national sports policy, while also encouraging social and educational games for recreation, skill-building, and digital literacy.
However, the Bill takes an uncompromising stance on real money games, where users deposit money or stake it for the chance of monetary returns. These services, the government argues, have caused widespread financial losses, psychological harm, and even links to money laundering. By banning their offering, facilitation, and advertising, the law seeks to protect the vulnerable populations, especially the youth.
To ensure compliance, the law prescribes stringent penalties. Offering or facilitating money games could attract up to three years in prison and fines of ₹1 crore, while advertising such games may lead to two years’ imprisonment and a ₹50 lakh fine. Repeat offenders will face even harsher punishments, with some offences designated as cognizable and non-bailable. Banks and financial institutions are also barred from enabling transactions linked to money games.
The Bill further proposes the creation of a central Authority on Online Gaming. This body will have the power to classify and register games, determine whether a game qualifies as a money game, and issue directions and codes of practice. It will also handle complaints, monitor compliance, and coordinate with state governments. Initial estimates peg the cost of setting up the Authority at ₹50 crore, with recurring annual expenses of around ₹20 crore.
At its core, the legislation recognises the potential of online gaming as a pillar of India’s digital economy. With a young talent pool, a booming domestic market, and global competitiveness on the horizon, e-sports and social games are positioned as legitimate growth sectors. The Bill directs the government to promote e-sports through training academies, incentive schemes, and integration with the national sports policy, while also encouraging social and educational games for recreation, skill-building, and digital literacy.
However, the Bill takes an uncompromising stance on real money games, where users deposit money or stake it for the chance of monetary returns. These services, the government argues, have caused widespread financial losses, psychological harm, and even links to money laundering. By banning their offering, facilitation, and advertising, the law seeks to protect the vulnerable populations, especially the youth.
To ensure compliance, the law prescribes stringent penalties. Offering or facilitating money games could attract up to three years in prison and fines of ₹1 crore, while advertising such games may lead to two years’ imprisonment and a ₹50 lakh fine. Repeat offenders will face even harsher punishments, with some offences designated as cognizable and non-bailable. Banks and financial institutions are also barred from enabling transactions linked to money games.
The Bill further proposes the creation of a central Authority on Online Gaming. This body will have the power to classify and register games, determine whether a game qualifies as a money game, and issue directions and codes of practice. It will also handle complaints, monitor compliance, and coordinate with state governments. Initial estimates peg the cost of setting up the Authority at ₹50 crore, with recurring annual expenses of around ₹20 crore.
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