The Lok Sabha has cleared the Promotion and Regulation of Online Gaming Bill, 2025, which seeks to ban all online games involving real money. The legislation, aimed at tackling gambling addiction, financial fraud, and money laundering, will now move to the Rajya Sabha for approval before it can become law.
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According to the government, “The harms of addiction, financial loss and even extreme consequences such as suicides associated with online money gaming can be prevented by prevention of such activities.” “Online money gaming platforms are often misused for financial fraud, money laundering, terror financing and messaging activity that compromise national security.”
Here are the key points of the online gaming bill explained:
1. Recognition of esports
Under the bill, esports will be recognised as a legitimate competitive sport in India. The Sports Ministry will set rules for tournaments, establish training academies, research centres and technology platforms. Incentive schemes and awareness drives will also support the growth of esports.
2. Boost to social and educational games
The bill allows the government to identify and register online social games. It will encourage platforms that promote learning, culture, and Indian values.
Any online game that requires money to play for cash rewards will be banned. These games cannot be advertised, and banks will be prohibited from processing related transactions. Current operators will be blocked under the IT Act, 2000.
4. Creation of a national gaming authority
A new body will oversee the online gaming space. Its role will include categorising games, handling complaints, and deciding if a game falls under the money game category. It will also issue guidelines and codes of conduct.
5. Strict penalties
Violating the rules could lead to jail terms of up to three years and fines of up to Rs 1 crore. Advertising such games can attract a penalty of Rs 50 lakh or imprisonment of up to two years. Repeat offenders may face harsher punishments, including up to five years in jail and fines of Rs 2 crore.