Online Gaming Bill 2025 tabled Parliament: Draft bill pushes for e-sports, strict penalties proposed

Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, presented the Promotion and Regulation of Online Gaming Bill, 2025, in the Lok Sabha today. The Bill has sparked controversy, with the opposition staging protests during its introduction. The Lok Sabha was temporarily adjourned following the introduction of the Bill, which seeks to impose stringent regulations on the online gaming industry, particularly focusing on activities involving monetary transactions.

Main focus

The primary focus of the proposed legislation is to eliminate online games that incorporate a financial component. The government argues that such games lead to serious issues, including addictions and financial losses, which in extreme cases have resulted in suicides among the youth. The Bill aims to address these concerns by instituting a comprehensive ban on real-money gaming apps and related activities. Additionally, it seeks to protect vulnerable groups, particularly children and young adults, from the adverse effects of such games.

India’s gaming industry has experienced rapid growth in recent years, attracting more than $2.78 billion in investment and hundreds of millions of users, while also sparking concerns about addiction, financial losses, and debt cycles disproportionately impacting lower-income communities.

Key features

E-sports

Key provisions of the Bill include the formal recognition of e-sports as a competitive sport and the establishment of training academies and technology platforms under the Ministry of Youth Affairs and Sports. This move is part of a broader strategy to integrate e-sports into the national sports policy, offering more structured support for digital gaming as a legitimate sporting activity. By doing so, the government hopes to nurture talent and create opportunities for gamers in a rapidly evolving digital landscape.

Educational games

Furthermore, the Bill empowers the Central Government to categorise and register games deemed safe and suitable for different age groups. It supports the development of educational, cultural, and skill-oriented games, emphasising the role of gaming in promoting digital literacy. The government plans to launch awareness campaigns to highlight the positive aspects of gaming while curbing harmful practices. These initiatives are aimed at fostering a balanced and healthy gaming culture across the nation.

Offences and penalties

> Offering or facilitating online money gaming: Punishable with up to 3 years imprisonment and/or a fine of up to ₹1 crore.

> Advertising money games: Punishable with up to 2 years imprisonment and/or a fine of up to ₹50 lakh.

> Financial transactions linked to money games: Punishable with up to 3 years imprisonment and/or a fine of up to ₹1 crore.

> Repeat offences: Subject to enhanced penalties, including 3–5 years imprisonment and fines of up to ₹2 crore.

National Gaming Authority

A significant feature of the Bill is the establishment of a National Gaming Authority, tasked with overseeing the categorisation, registration, and monitoring of online games. This body will also have the authority to issue guidelines, manage complaints, and ensure compliance with the new regulations. Offending platforms could face severe penalties, including being blocked under the provisions of the IT Act, 2000.

Security concerns

The government has emphasised that the Bill addresses broader security concerns related to money laundering, fraud, and potential terror financing through unregulated gaming platforms. By aligning with existing laws, such as the Bharatiya Nyaya Sanhita, 2023, the Bill extends prohibitions from the physical to the digital domain.

Online gaming sector

The online gaming industry has warned that the proposed blanket ban could lead to massive job losses and company closures. In a joint letter to Home Minister Amit Shah, the All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and Federation of India Fantasy Sports (FIFS) claimed the Bill could “destroy over 2 lakh jobs, shutter 400+ companies, and undermine India’s standing as a digital innovator.”

They cautioned that legitimate platforms may be forced to shut, driving users toward illegal matka networks, offshore gambling sites, and unregulated operators. The letter stressed that the fast-growing sector—valued at Rs 2 lakh crore, generating Rs 31,000 crore in revenue and Rs 20,000 crore in taxes—has been expanding at 20% CAGR, with India’s gamer base rising from 36 crore in 2020 to over 50 crore in 2024.