Lok Sabha passes Online Gaming Bill 2025 that can ban real money gaming apps like Dream11, Winzo

Union Minister for Electronics and Information Technology Ashwini Vaishnaw has introduced The Promotion and Regulation of Online Gaming Bill, 2025 in the Lok Sabha, triggering protests from Opposition members and industry players. The bill was passed by a voice vote today.

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The legislation, cleared by the Cabinet a day earlier, proposes a comprehensive ban on online games involving monetary stakes. The government said the move responds to growing concerns that such platforms have fueled addiction among children and young adults, caused financial distress, and in some cases led to suicides.

The Bill also cites threats to national security, public order, and financial sovereignty, linking online money games to money laundering, tax evasion, and even financing of terrorism.

S. Krishnan, Secretary at the Ministry of Electronics and Information Technology, said the Bill addresses both recognition of the creative gaming industry and restrictions on formats deemed harmful.

“The provisions to curb real money gaming apps serve the larger public interest. This is a societal decision,” he told media, adding that the Finance Ministry was “comfortable with giving up” revenue generated by money games. The draft legislation defines an “online money game” as one played by paying fees, depositing money, or staking other assets with the expectation of winning monetary returns, regardless of whether it is based on skill, chance, or both.

Violators offering such games could face up to three years in prison or fines of as much as Rs 1 crore, while those advertising them could face two years of imprisonment and fines up to Rs 50 lakh. Banks and financial institutions enabling such transactions would also be penalised.

Players themselves would not face criminal liability, the government said, framing them as victims rather than offenders. Repeat offenders face harsher penalties: operators can be jailed for up to five years and fined up to Rs 2 crore, while advertisers can face three years’ imprisonment and fines up to Rs 1 crore.

The Bill also makes offences under Sections 5 and 7 (operation and financial facilitation of money games) cognizable and non-bailable. The Bill also proposes a statutory regulatory authority with powers to classify games, register platforms, and formulate policy for permissible segments such as eSports and social games. Subscription-based entertainment and skill-based formats would be allowed so long as no monetary returns are promised.

The Central Government is empowered to recognise e-sports as legitimate sports, promote training academies, research centres, and incentive schemes, and similarly support online social games for educational and recreational purposes. The Bill grants the Central Government wide enforcement powers, including blocking of online money gaming services under Section 69A of the IT Act, search and seizure without warrant in both physical and digital spaces, and authorisation of officers for investigation.

Companies and their directors can also be held liable if offences occur with their consent or due to negligence.

In a letter to Home Minister Amit Shah, the All India Gaming Federation, the E-Gaming Federation, and the Federation of Indian Fantasy Sports warned that the prohibition would “destroy over 2 lakh jobs, result in over 400 companies shutting down, and weaken India’s position as a digital innovator.”

The bodies said the sector, valued at more than Rs 2 lakh crore, generated Rs 31,000 crore in annual revenue, contributed over Rs 20,000 crore in taxes, and had attracted more than Rs 25,000 crore in foreign direct investment by mid-2022.

“Such a blanket prohibition would strike a death knell for this legitimate, job-creating industry,” the letter read, cautioning that users would migrate to illegal offshore networks and unregulated operators.

Supporters of the Bill argue that it prioritizes public welfare. “Online money games have left children and youth vulnerable to exploitation and serious mental health risks. This step puts wellbeing first, ensuring our future generations grow with balance and dignity,” Preetha Reddy, Executive Vice Chairperson of Apollo Hospitals, wrote on X. 

The new Online Gaming Bill is more than regulation, it is protection. Online money games have left children and youth vulnerable to exploitation and serious mental health risks. This step puts wellbeing first, ensuring our future generations grow with balance and dignity.…

— PreethaReddyOfficial (@preethareddy28) August 20, 2025

By distinguishing between money games and eSports, the government has signaled its intent to both restrict exploitative practices and promote competitive gaming. 

Officials said the measure seeks to address fragmented regulation, safeguard consumers, and establish India as a global hub for digital innovation in non-monetary gaming. 

The Bill is backed by the President’s recommendation under Article 117 of the Constitution, and its financial memorandum estimates Rs 50 crore in initial expenditure and Rs 20 crore annually for setting up the new regulatory authority .