Online Gaming Bill Becomes Law: Real-Money Games Banned, E-Sports Boosted
The new legislation imposes a complete ban on online money games—defined as any game involving deposits or stakes for financial gain...........
NEW DELHI– India’s digital gaming industry faces a historic shift as the Promotion and Regulation of Online Gaming Bill, 2025 became law after receiving President Droupadi Murmu’s assent on Friday, just a day after clearing both Houses of Parliament.
The new legislation imposes a complete ban on online money games—defined as any game involving deposits or stakes for financial gain—while simultaneously promoting e-sports and social online gaming.
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Key Provisions of the Law
- Ban on real-money games: Platforms such as Dream11, MPL, PokerBaazi and others face closure or restructuring.
- Penalties: Up to 3 years in jail and ₹1 crore fine for violators; repeat offenses may attract 3–5 years imprisonment and fines up to ₹2 crore.
- Financial safeguards: Banks and institutions barred from processing transactions related to money games.
- Support for e-sports: Recognition as a competitive sport, with dedicated training academies, research centres, and integration into sports policy.
- Promotion of social gaming: Recreational, educational, and skill-based games without monetary stakes will be supported through registration mechanisms and digital literacy drives.
- Central Online Gaming Authority: To regulate the industry, ensure compliance, and encourage innovation.
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Government’s Stand
Union IT Minister Ashwini Vaishnaw, while piloting the bill, said the law was necessary to curb the social, financial, and psychological harms of money gaming. “We are seeing suicides and families getting destroyed every day due to these platforms,” he said.
Mixed Reactions
- Industry bodies (AIGF, EGF, FIFS): Warn of job losses, loss of ₹20,000 crore GST revenue, and growth of illegal offshore gaming.
- Opposition MPs: Criticized the lack of consultation; called for regulation, not a blanket ban.
- Supporters (BJP MPs & govt sources): Hailed it as a bold step to protect youth and national security, citing risks of money laundering and terror financing.
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The law will come into effect once the government issues a notification, expected soon. Analysts predict a pivot by major gaming companies toward e-sports and casual gaming, while others may face shutdowns or legal battles.
By banning exploitative practices and uplifting responsible gaming, India aims to emerge as a global leader in regulated, innovation-driven digital gaming.
