The Lower House cleared the Online Gaming Bill 2025, to ban facilitating, operating and advertising of online games played with real money, with a view to promote the growth of eSport and social gaming in India.
The Bill has been brought to control the increasing financial fraud, online game addiction, and money laundering related to online real money gamings.
The government explained online gaming as a serious social and public health threat.
Emphasising the urgency of this move, IT Minister Ashwini Vaishnaw said: “Online money gaming has become a serious social and public health issue, causing demonstrable negative impact on society.”
Further, He stressed that the Bill would not only ban harmful online money games but also encourage two positive segments, eSports and online social gaming, positioning India as a global hub for game development.
The minister noted that despite several rounds of consultations with the industry, including attempts at setting up a self-regulatory framework, no effective solution emerged. “We have been requesting the industry to remove the addictive elements, which come into play. There are cases of money laundering, issues related to serious instances where even support to terror activities has been noted in online money games. Cross-border fund flow is clearly visible. So all these things have been taken into account while drafting the Bill,” Vaishnaw explained.
Addressing concerns raised by industry bodies that the ban could hurt investments and jobs, Vaishnaw reassured that the government would support the broader gaming industry. “Two of the three segments, e-sports and online social gaming, will be promoted and encouraged. And we will be creating programs which help the growth of the gaming industry, per se. And the people who are employed in the gaming industry will find new opportunities. Online money gaming…there is a demonstrated significant negative impact on society,” he said.
The Promotion and Regulation of Online Gaming Bill, 2025 passed by the Parliament.
The Bill takes a balanced approach – promoting what’s good, prohibiting what’s harmful for middle-class and youth.
The Bill prohibits the operation, facilitation, and advertising of real money games, while treating users of such platforms as victims rather than offenders. “That is why there is no punitive action on the users. However, those offering online money gaming service and those advertising for these services as well as the people who are enabling the financial transactions for such services are subject to liabilities under this Bill,” the minister clarified.
Calling it a decisive step in safeguarding social well-being, Vaishnaw underscored that when industry interests clash with public safety, society’s well-being must take precedence. He pointed to the World Health Organization’s recognition of “gaming disorder” as a condition associated with anxiety, depression, sleep problems, social withdrawal, and compulsive behaviour. “We have seen the addiction to online money gaming has caused, has led to middle class families losing their entire life savings. There are cases of suicide,” he said.
Under the new framework, eSports and online social gaming will receive legal recognition and institutional support, with an authority set up to promote programs and schemes aimed at nurturing these sectors. Vaishnaw stressed, “Our endeavour is to promote eSports and online social gaming, and we would like India to become a game-making hub. For that, a lot of efforts are being made.”
The passage of the Bill marks a defining moment for India’s digital entertainment sector, drawing a sharp line between harmful money-driven gaming and the growth-oriented segments of eSports and social gaming.
