Within a quick timeframe of seven days, the Government of India introduced, contemplated and passed the Promotion and Regulation of Online Gaming Bill, 2025.
The bill was first passed in the lower house, Lok Sabha, followed by the Rajya Sabha the following day. It then received the crucial Presidential assent and was officially notified in the gazette. The only thing pending now is for the government to issue a notification indicating the official date from when the law will come into force and start being implemented.
What does the Ban Signify?
Any app or online platform offering money-based games or related services in India will now be considered illegal. These platforms will no longer be allowed to operate in the country and subject to penalties/punishment if found in any form of violation.
However, the Act also states that it will promote social gaming and e-sports, with a focus on building a healthy online gaming ecosystem. In simple terms, the government has imposed a blanket ban on all online games involving monetary transactions.
As a result, several popular platforms that offer real-money games — such as Dream11, Games24x7, Winzo, GamesKraft, 99Games, KheloFantasy, and My11Circle — will be required to shut down their services in India with immediate effect. The government reasoned that money-based online gaming has become increasingly addictive, leading to serious financial losses and social distress as a result of it. In its view, protecting citizens from these plausible consequences is essential over supporting a small segment of the gaming industry.
Industry experts and companies on the contrary argue that the real-money gaming sector contributes approximately INR 20,000 crore annually through direct and indirect taxes. The industry also supports close to 2,00,000 direct and indirect jobs across more than 400 companies. They warn that the approved ban could lead to widespread job losses and the closure of numerous firms.
Different Online Games
The Promotion and Regulation of Online Gaming Act, 2025 divides online games into four categories:
a) e-sports
b) social games
c) educational games
d) online money games
According to the Act, an ‘online money game’ is one that is based on skill, chance, or both – where a user pays a fee, deposits money, or places a stake with the hope of winning something valuable in return, usually money. Simply put, money games in India, also called real money games (RMG), are online platforms where people pay to join games and have a chance to win cash based on how well they play. These include games like fantasy sports (such as cricket or football), rummy, poker, and other games that involve financial transactions.
Apart from money games, the Act also includes e-sports, social games, and educational games. E-sports are competitive video games played in tournaments – quite similar to the traditional sports, with games like PUBG and FIFA being popular examples.
Social games are casual games mainly played for fun with friends, such as Ludo King, Candy Crush, or online chess. Educational games are meant for learning and skill development. The Act encourages these types of games because of their positive impact.
Promotion of Games
The Union Minister of Electronics and Information Technology Ashwini Vaishnaw, while introducing the bill in Parliament, stated that it is only banning games involving monetary transactions, which are addictive in nature. According to the Act, the government will take steps to officially recognize and support ‘E-sports’ as a legitimate competitive sport in India. This means treating video game competitions on a similar scale as the traditional sports like cricket or football.
What is Prohibited?
- The Act clearly states that it is illegal for anyone to offer or help others offer online games where real money is involved. That includes organizing, supporting, or even encouraging people to play such games.
- Additionally, no one is allowed to create or share advertisements which promote these types of games. This includes ads in newspapers, TV, apps, websites, social media, or even messages sent through email or messaging apps.
- Also, as per the Act, banks, digital wallets, and any financial platforms are also not allowed to help process payments related to these games. If found violating this law, it will be met with penalty.
Regulatory Authority
The Act allows the Central government to create or appoint a special body, called the ‘Authority’, to regulate online gaming. This Authority will include a chairperson and other officiating members. The Authority can decide whether a particular game involves real money or not, based on applications it receives or by starting its own investigations.
The Act includes provisions to penalize everyone from service providers to advertisers to those who will facilitate such transactions.
- As per the Act, anyone offering a real-money online gaming service despite the ban, can be jailed for up to three years or fined up to INR 1 crore, or both.
- If someone breaks the advertising ban and promotes these games, the punishment is up to two years in jail, a fine of up to INR 50 lakh, or both.
- Anyone who helps transfer or receive payments for real-money gaming can also face up to three years in jail or INR 1 crore fine, or both.
The Need for Legislation
- According to the government, online gaming in India has grown rapidly, mainly because of affordable smartphones and widespread internet access. However, there is currently no single law or clear set of rules to regulate this rapidly rising industry.
- These games create serious problems for individuals in the society. Many people become addicted, lose large amounts of money, suffer from stress, and fall victim to scams.
Industry Reaction
The online gaming industry has as expected, strongly reacted to the ban on real money games. The All-India Gaming Federation (AIGF) has even appealed to the Union Home Minister Amit Shah, to implement regulations instead of a complete ban on the industry.
AIGF has warned that the ban could hurt millions of players and push them toward unsafe and illegal gaming sites. It said the law could destroy a growing industry that creates jobs and helps the economy. These companies now further explore to escalate the matter to the apex body, Supreme Court of India.
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