LS passes Bill to promote e-sports, ban online money games
The Lok Sabha on Wednesday passed the Promotion and Regulation of Online Gaming Bill, 2025 which introduces stringent measures to regulate the fast-expanding gaming industry while promoting e-sports and social online games.
The legislation, cleared by the Union Cabinet a day earlier, seeks to curb money-based online gaming by prohibiting such services, their advertisements, and related financial transactions. At the same time, it aims to encourage e-sports and online social games, which the government views as drivers of innovation and economic opportunity.
Introducing the Bill, Union Minister Ashwini Vaishnaw urged members across party lines to support the measure unanimously. He said online gaming consists of three categories, of which money-based games posed a serious social threat.
3-year jail, Rs 1 crore fine for offering money games
The law defines “online money games” as those requiring players to pay a fee or deposit money with the expectation of monetary returns
Offering such games will be punishable with imprisonment of up to three years, a fine of up to Rs 1 crore, or both
Advertising them could invite up to two years in jail, a Rs 50 lakh fine, or both. Repeat offenders face even harsher penalties, with jail terms extending up to five years
“There are families that have lost their hard-earned money to online money games. Addiction is widespread. Algorithms are often so opaque that players don’t even know who they are playing against. These games are linked to financial ruin, money laundering, and even terror financing,” Vaishnaw told the House.
The law defines “online money games” as those requiring players to pay a fee or deposit money with the expectation of monetary returns, irrespective of whether the outcome is based on skill, chance, or both.
Offering such games will be punishable with imprisonment of up to three years, a fine of up to Rs 1 crore, or both. Advertising them could invite up to two years in jail, a Rs 50 lakh fine, or both. Repeat offenders face even harsher penalties, with jail terms extending up to five years.
Significantly, the Bill does not criminalise players of money-based games, treating them as victims rather than offenders in order to avoid harassment. Instead, it targets platforms and promoters facilitating such activities, which have been linked to addiction, money laundering, and severe mental health issues including depression and suicides.
On the other hand, the Bill promotes e-sports and casual online games such as Candy Crush, recognising their potential to make India a global hub for game development. It also proposes a statutory regulatory authority to register platforms, oversee compliance, and determine whether a game qualifies as an online money game after due inquiry.
The government said the law addresses the fragmented regulatory environment around online gaming in India, which has grown rapidly in recent years but lacked clear oversight. By distinguishing between harmful money-based gaming and legitimate e-sports, the legislation seeks to strike a balance between public interest and industry growth.
India