Online Gaming Bill Becomes Law, Banning Real-Money Games and Boosting E-Sports

NEW DELHI- The Promotion and Regulation of Online Gaming Bill, 2025, has officially become law after receiving the assent of President Droupadi Murmu on Friday, just a day after its swift passage through both Houses of Parliament.

The landmark legislation, which bans all forms of online games involving monetary stakes while promoting e-sports and online social gaming, marks a significant shift in India’s digital gaming landscape.

The bill was passed by the Lok Sabha on August 20, 2025, and the Rajya Sabha on August 21, 2025, amid protests from opposition members who criticized the lack of industry consultation and the speed of its passage.

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Union Minister for Electronics and Information Technology Ashwini Vaishnaw, who introduced the bill, emphasized its necessity to protect India’s youth and vulnerable populations from the social, financial, and psychological harms caused by online money gaming, including addiction, financial fraud, and money laundering.

 “This is a good bill. We are seeing suicides and families getting destroyed every day due to these platforms,” Vaishnaw said during parliamentary debates.

The new law imposes a complete ban on online money games, defined as any game where users deposit money or stakes with the expectation of financial gain, irrespective of whether the game is based on skill or chance.

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Popular platforms such as Dream11, Mobile Premier League (MPL), PokerBaazi, and others face an existential crisis as their primary revenue models are now prohibited. Violators of the law, including those offering, facilitating, or advertising such games, could face imprisonment of up to three years and fines up to ₹1 crore. Repeat offenses may attract harsher penalties, including 3-5 years of imprisonment and fines up to ₹2 crore.

Financial institutions are also barred from processing transactions related to these games, with similar penalties for non-compliance. In contrast, the legislation strongly supports the growth of e-sports and online social gaming.

E-sports, recognized as a legitimate competitive sport, will benefit from dedicated training academies, research centers, and integration into national sports policies under the Ministry of Youth Affairs and Sports.

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Online social games, defined as those played for recreation, entertainment, or skill development without monetary stakes, will be promoted through registration mechanisms and campaigns to foster digital literacy and cultural values.

A central Online Gaming Authority will be established to regulate the sector, ensure compliance, and encourage innovation.

The bill’s passage has sparked mixed reactions. Industry bodies like the All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and Federation of Indian Fantasy Sports (FIFS) have expressed concerns, warning that the ban could lead to job losses, reduced GST revenue, and the growth of unregulated offshore platforms.

Congress MPs Karti Chidambaram and Priyank Kharge criticized the lack of stakeholder consultation, with Chidambaram estimating an annual revenue loss of ₹20,000 crore and Kharge arguing that regulation, rather than a blanket ban, would better protect citizens.

On the other hand, supporters of the bill, including several BJP MPs, hailed it as a necessary step to curb addiction and protect national security, citing risks of money laundering and terror financing through unregulated platforms.

The law will come into effect following a notification from the government, expected shortly, which will specify the enforcement date. Industry insiders speculate that major gaming firms may pivot to e-sports or casual gaming models to survive, while others may face closure or legal challenges.

The legislation positions India as a potential global leader in responsible gaming, balancing innovation with stringent safeguards against exploitative practices. As the nation awaits the notification, the Online Gaming Bill, 2025, signals a bold move to reshape India’s digital economy, prioritizing public welfare over the multi-billion-dollar real-money gaming industry.