Government passes Online Gaming Bill 2025 banning gambling apps and legalizing esports


The Lok Sabha and Rajya Sabha have passed the Promotion and Regulation of Online Gaming Bill, 2025, establishing a national legal framework to regulate India’s digital gaming sector. The legislation promotes e-sports and online social games while prohibiting online money games that pose financial, psychological, and societal risks.

Announced by Ashwini Vaishnaw, Minister for Electronics & IT, Railways, and Information & Broadcasting, the Bill was also shared publicly via X (formerly Twitter). It reflects a policy direction that prioritizes the safety of families and youth, aligning with the government’s broader digital welfare agenda.

Purpose and Scope of the Bill

The Bill outlines the following objectives:

  • Promote e-sports and online social games
  • Prohibit online money games involving financial stakes
  • Establish a central Online Gaming Authority for regulatory oversight and developer support
  • Address addiction, financial fraud, money laundering, and terror financing concerns

Vaishnaw emphasized the rapid growth of India’s digital technology sector over the past decade, while warning of the destructive impact of online money gaming on middle-class families.

Classification of Online Games

The Bill categorizes online games into three segments:

  1. e-Sports – Competitive, skill-based, and team-oriented; legally recognized and actively promoted
  2. Online Social Games – Casual, educational, and community-driven; supported as safe and enriching digital engagement
  3. Online Money Games – Financially exploitative and addictive; completely prohibited under the new law

Vaishnaw noted that e-sports require strategy, reflexes, and teamwork—comparable to traditional sports like cricket and football.

Support for e-Sports

The Bill introduces several initiatives to promote e-sports:

  • Legal recognition as a formal sport
  • Government schemes for training, infrastructure, and competition
  • Integration into national sports development programs
  • Strategic support for talent development and digital engagement
Encouragement for Online Social Games

Social games such as puzzles, card games, and brain teasers are recognized for their educational and community-building value. The Bill supports:

  • Game developers and creators as part of India’s software and creator economy
  • Platforms that foster learning, interaction, and digital literacy
  • Expansion of safe, non-addictive entertainment options
Ban on Online Money Games

The legislation imposes a complete ban on games involving monetary stakes, including poker, rummy, and fantasy betting platforms. Cited concerns include:

  • Addiction and compulsive behavior
  • Financial ruin and mental health disorders
  • Misleading celebrity endorsements
  • Links to money laundering and terror financing

Vaishnaw cited a report documenting 32 suicides over the past 31 months linked to online money gaming. He stated that crores of families have been affected, with thousands of complaints received nationwide.

Penalties for Violations

The Bill introduces strict penalties for violations:

  • First-time offenses: Up to 3 years imprisonment and fines up to ₹1 crore
  • Repeat offenses: 3 to 5 years imprisonment and fines up to ₹2 crore
  • Enforcement focus: Service providers, advertisers, and financial platforms
  • Players: Treated as victims, not offenders
Role of the Online Gaming Authority

A new regulatory body will be established to:

  • Classify and register games
  • Support developers and creators
  • Address user grievances
  • Issue compliance guidelines
  • Block harmful platforms under IT Act provisions

This authority will ensure coordinated policy implementation and strategic development across the sector.

Parliamentary Context

During the Lok Sabha session, Speaker Om Birla described the Bill as a critical step toward addressing suicides and financial losses caused by online money gaming. He urged members to engage in the discussion, noting that the issue had been raised repeatedly by concerned legislators.

Conclusion

The Promotion and Regulation of Online Gaming Bill, 2025 reflects the Government’s commitment to a safe, secure, and innovation-driven Digital Bharat. Vaishnaw stated that the legislation follows the principle consistently upheld by Prime Minister Narendra Modi—choosing societal welfare over financial interests.

By distinguishing constructive digital engagement from exploitative gaming models, the Bill aims to protect citizens while fostering creativity and growth in India’s online gaming ecosystem.