State IB Minister L Murugan briefs Lok Sabha on online gaming ban

The government has enacted the Promotion and Regulation of Online Gaming Act, 2025, introducing a sweeping ban on all forms of online money games while laying the groundwork for a regulated ecosystem to promote e-sports and social gaming, Minister of State for Information and Broadcasting L. Murugan informed the Lok Sabha on Wednesday. The Act was implemented in August last year.

Murugan shared that the legislation, aimed at building a safe and accountable digital gaming environment, prohibits online money games across categories, including games of chance, skill, or a mix of both. The ban also extends to advertising, promotion and facilitation of such games, along with restrictions on financial transactions linked to them through banking and payment systems.

The Act empowers authorities to block access to non-compliant platforms under provisions of the Information Technology Act, 2000, strengthening enforcement capabilities against illegal operators.

Stringent penalties have been prescribed for violations. Offering or facilitating online money games could attract imprisonment of up to three years or fines up to Rs 1 crore, or both. Repeat offences may lead to imprisonment ranging from three to five years, with fines between Rs 1 crore and Rs 2 crore. Advertising such games is punishable with up to two years in jail or fines up to Rs 50 lakh, with stricter penalties for subsequent offences.

Alongside the prohibition, the law provides for the formal recognition and promotion of e-sports and online social games. It also proposes the creation of an Online Gaming Authority of India to oversee the sector.

The authority will be tasked with classifying and registering permissible games, determining whether a game qualifies as a money game, issuing codes of practice, and handling user grievances. The move is expected to bring regulatory clarity and coordinated oversight to the fast-evolving online gaming industry.

To operationalise the law, the Ministry of Electronics and Information Technology has released draft Promotion and Regulation of Online Gaming Rules, 2025 for public consultation. The government has invited feedback from stakeholders as part of its consultative approach to policymaking.