India’s digital leap—spanning Digital India, DPI, UPI, 5G and the semiconductor push—has transformed daily life. Under Prime Minister Narendra Modi’s leadership, technology adoption has delivered wide benefits but also fresh risks, especially from online money gaming. The bill aims to curb addiction, financial losses and national-security risks while encouraging safe, pro-social gaming.

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It also brings rules for the online world into line with current prohibitions on betting and gambling in the real world, such as the Bharatiya Nyaya Sanhita, 2023, and other state laws.

What has happened in Parliament?

Union IT Minister Ashwini Vaishnaw introduced the Bill in the Lok Sabha on Wednesday amidst Opposition protests. The House—temporarily chaired by P. C. Mohan—was adjourned until 2 PM shortly after the introduction. The Cabinet had cleared the Bill a day ago, it is learnt, citing evils like suicides due to financial losses and addiction among children and youth.

Key provisions in full

1) Promotion and recognition of eSports

  • eSports has been identified as a valid competitive sport in India.
  • Framing of guidelines and standards for tournaments by the Ministry of Youth Affairs & Sports.
  • Setting up of training academies, research institutions and technology platforms.
  • Incentive schemes, awareness drives and mainstreaming in wider sports policy.

2) Promoting social and educational games

  • The central government would have the authority to recognise, classify and register social games online.
  • Enabling platforms for the creation and distribution of safe, age-appropriate titles.
  • Awareness initiatives on the contribution of social games towards recreation, skill enhancement and online literacy.
  • Extension support to cultural and educational content based on Indian values.
  • Online social games will be supported by MeitY and MIB.

3) Ban on detrimental online money games

  • Total ban on providing, conducting or facilitating online money games—on skill, chance or both.
  • Prohibition on promotion and advertisement of money games through all media.
  • Prohibition of financial transactions related to such games; payment systems and banks excluded from handling.
  • Ability to cut off access to illegal gaming websites under the Information Technology Act, 2000.

4) Creation of an Online Gaming Authority

The central government is to create or appoint a national-level authority (or agencies).

Tasks include:

  • Classification and registration of online games.
  • Decision on whether a game can be a money game or not.
  • Redressing complaints and grievances pertaining to online games.
  • The Authority can issue guidelines, orders and codes of practice in order to comply.

5) Offences and penalties

  • Providing or facilitating online money gaming: imprisonment for up to 3 years and/or a fine of ₹1 crore.
  • Advertising money games: imprisonment for up to 2 years and/or a fine of ₹50 lakh.
  • Financial transactions for money games: imprisonment for up to 3 years and/or a fine of ₹1 crore.
  • Repeat offences: stricter punishments, including 3–5 years' imprisonment and ₹2 crore fines.
  • Offences under critical sections are non-bailable and cognisable.
  • Players are not criminalised; they are considered victims, not offenders, by the Bill.

6) Corporate and institutional liability

Firms and officers in charge are liable unless due diligence is established.

Independent or non-executive directors who do not take part in decision-making are protected.

7) Powers of investigation and enforcement

  • The Central Government can empower officers to investigate, search and seize digital or physical assets associated with offences.
  • Officers can enter, search and arrest without a warrant in some suspected cases.
  • Provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023, are applicable to investigations.

8) Rule-making powers and delegated legislation

Making rules by the Central Government for:

  • Promotion of eSports and social gaming.
  • Recognition, classification and registration of online games.
  • Powers and operation of the Authority.
  • Any other thing required or authorised by the Act.

Definitions and scope

An online money game is one in which a user plays on payment of fees, putting in money or other stakes, hoping for a return of money or other stake, whether the game is of skill, chance or a combination of both.

The Bill specifically excludes eSports and online social games that do not have monetary stakes (e.g., casual entertainment or skill-based structures without betting).

Government's rationale

Harms of addiction, financial loss and even suicides linked with online money games are the reasons cited by authorities. Authorities also indicate abuse for financial fraud, money laundering, terror financing and hidden messaging, which raises national security issues. The Bill seeks to substitute fragmented rules with one comprehensive national scheme.

Industry reaction and likely effect

Industry associations—the All India Gaming Federation (AIGF), E-Gaming Federation (EGF) and the Federation of India Fantasy Sports (FIFS)—alert that mass disruption may be provoked by the blanket ban. In a collective letter to the Home Minister, they stated that the Bill would "destroy more than 2 lakh jobs, cause more than 400 companies to close down, and dilute India's position as a digital innovator."

Their statistics are:

  • A ₹2 lakh crore online skill-gaming industry.
  • ₹31,000 crore of annual revenues and more than ₹20,000 crore in taxes.
  • 20% CAGR, with hopes of doubling by 2028.
  • India's gamer community increased from 36 crore (2020) to 50+ crore (2024).
  • ₹25,000+ crore FDI through June 2022.

They warn that genuine sites may close, compelling crores of users onto illegal matka groups, offshore gambling sites and unregulated operators.

Intended positives

  • Boost to creative economy: Increased emphasis on game development, exports, jobs and innovation.
  • Empowering youth: Positive engagement through eSports and skill-based digital games.
  • Safer digital space: safeguard against exploitative money-gaming.
  • Global leadership: Places India as a model-setter in accountable gaming policy and innovation.

Bottom line

The Promotion and Regulation of Online Gaming Bill, 2025, sets a firm line: blanket prohibition of online money games and a regulated thrust to eSports and social/educational games. With a new regulator, severe sanctions and robust enforcement powers, the government contends citizens and national security will be better safeguarded.

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The industry, on the other hand, raises alarm about economic consequences and movement to the grey market. It will ultimately depend on rule-making, enforcement, and the way the new Authority categorises and regulates games in practice.