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The Indian government has introduced the Promotion and Regulation of Online Gaming Bill, 2025 in the Lok Sabha. The Bill aims to stop online money gaming, advertisements, and financial transactions linked to such platforms. While the move is being welcomed by those worried about addiction and fraud, it has also sparked protests from the gaming industry, which fears heavy job losses and a shift of users to unsafe offshore apps.
What the Bill Proposes
The new law has five main parts:
- Ban on online money gaming: Any platform offering, promoting, or advertising online money games will not be allowed. Banks and payment services will also be barred from processing transactions for these apps.
- Covers all betting formats: The ban will apply to all types of money-based games fantasy sports, rummy, poker, lotteries, card games whether based on skill, chance, or both.
- Strict penalties: Offering such services could mean up to three years in jail or a fine of ₹1 crore. Advertising or sponsoring them may lead to two years in jail or a ₹50 lakh fine. Even financial intermediaries involved could face the same penalties.
- Corporate responsibility: Company directors, managers, and officers may be held personally responsible if offences occur with their approval or neglect. Independent directors not linked to such decisions are exempt.
- Warrantless searches: Officers appointed by the government can enter, search, and seize data from buildings, vehicles, and even digital spaces without a warrant. These powers are drawn from the Bharatiya Nagarik Suraksha Sanhita, 2023.
The government says these steps are necessary to fight addiction, money laundering, and rising fraud linked to money gaming platforms.
What’s Exempt?
The Bill does not target all forms of gaming. eSports and social games without money stakes are exempt. The government has made it clear that it wants to promote safe formats like eSports, which focus on skill, digital literacy, and cultural values.
Government Push for eSports and Social Games
The Ministry of Youth Affairs and Sports will take the lead in supporting eSports with training academies, awareness drives, and research programs. At the same time, the Ministry of IT and Broadcasting will encourage online social and educational games. This shows that the focus is not on stopping gaming altogether but creating a healthier digital environment.
Online Gaming Authority Proposed
The Bill also plans for a national authority to regulate the sector. This body will decide whether a game counts as a money game, register platforms, address complaints, and ensure compliance with the law. It will also issue codes of conduct and guidelines for safe gaming practices.
Why Now?
Minister Ashwini Vaishnaw said money-based games are creating serious problems for youth, including debt, addiction, and mental health struggles. Reports of financial fraud, money laundering, and even use of such apps for illegal activities have also pushed the government to act. With smartphones spreading fast in smaller cities, the risks are rising.
Industry Reaction
India’s gaming industry, which employs more than 2 lakh professionals and has attracted around ₹25,000 crore in foreign investment, has expressed strong concerns. Industry bodies like AIGF, EGF, and FIFS argue that a blanket ban could harm a legal industry while driving users to unregulated offshore apps.
They also warn of:
- Loss of jobs and tax revenue (up to ₹20,000 crore in GST annually).
- Shutdown of companies, with nearly four lakh firms at risk.
- Impact on Indian sports sponsorships, as many fantasy gaming platforms fund cricket and other leagues.
Companies like Dream11, MPL, Games24x7, WinZO, and Nazara Technologies stress that they do not engage in gambling or money laundering and run fully legal, skill-based platforms.
Key Concerns Raised
Experts point out several gaps in the Bill:
- No clear line between skill-based money games and gambling.
- No transition plan for refunds, employee protection, or shutdown procedures.
- Risk of users moving to illegal apps if Indian platforms close.
- Possibility of Indian companies shifting overseas, leaving the local market exposed to unsafe operators.
Many suggest that instead of a complete ban, India should adopt international models (like in the UK or Australia) that regulate gaming through licensing, compliance checks, and strict advertising rules.
What Happens Next?
The Bill has been tabled in the Lok Sabha and will be debated in this session. If passed, it will become India’s first central law on online gaming. While the government stands firm on the need for strict action, industry voices are pressing for clarity and balance. The final version of the law may change depending on how these debates unfold.
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