Rajya Sabha passes Gaming Bill 2025 to ban Dream11, WinZO; Vaishnaw says, 'This is like drug addiction'

The Rajya Sabha on Thursday passed the Promotion and Regulation of Online Gaming Bill, 2025, clearing both Houses of Parliament in less than 72 hours.

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#RajyaSabha passes The Promotion and Regulation of Online Gaming Bill, 2025.#MonsoonSession#OnlineGamingBill2025#StopGamingSuicides@PMOIndia@GoI_MeitY@AshwiniVaishnaw@DrLMurugan@JitinPrasada@PIB_India@DDNewslive@airnewsalertspic.twitter.com/epahbyfm9v

— Ministry of Information and Broadcasting (@MIB_India) August 21, 2025

The legislation, which now awaits President Droupadi Murmu’s assent, seeks to impose a nationwide ban on real money games (RMGs) such as Dream11, WinZO, and RummyCircle. 

The bill prohibits real money gaming companies from accepting user deposits for games where players could lose money. Violations would be punishable by up to three years in prison and fines of as much as Rs 1 crore.

Not only companies but also those advertising them could face up to two years in prison and fines of as much as Rs 50 lakh. Repeat offences attract enhanced penalties, including three to five years' imprisonment and fines up to Rs 2 crore. Banks and financial institutions facilitating such transactions would also face penalties.

Players themselves would not face criminal liability, the government said, framing them as victims rather than offenders.

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.

Tabling the bill in the Upper House, Union IT Minister Ashwini Vaishnaw compared money-gaming addiction to drug abuse.

“The money-gaming addiction is like drug addiction. The powerful people behind online money games will challenge the decision in courts. They will run social media campaigns against this ban. We have seen the impact of games and how the money is used to support terror,” he said.

He earlier said that around 45 crore people in India lose money on such platforms each year, with total annual losses estimated at around Rs 20,000 crore.

Speaking to ANI, he said that bill’s aim was to “promote and encourage the good parts” of online gaming, including efforts to make India a hub for game development through institutions such as the proposed Indian Institute of Creative Technologies.

Earlier, the All India Gaming Federation, the E-Gaming Federation and the Federation of Indian Fantasy Sports wrote to Home Minister Amit Shah, warning that the prohibition would “destroy over two 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.