Ban on Real Money Games: Lok & Rajya Sabha Passes Promotion & Regulation of Online Gaming Bill, 2025

In a landmark move, the Lok Sabha has passed the Promotion and Regulation of Online Gaming Bill, 2025, on 20 August, marking a turning point for India’s booming gaming industry. The legislation seeks to curb the rising concerns of gambling addiction, financial frauds and money laundering linked with online money games, while at the same time paving the way for e-sports and educational gaming to flourish in a regulated environment.

Key Highlights of the Bill

1. Blanket Ban on Real-Money Online Games

The Bill introduces a complete prohibition on real-money online games. This includes fantasy sports, poker, rummy, lotteries, and betting applications—whether they are claimed to be games of skill or chance. Offering, operating, promoting or advertising such games will now be illegal across India.

2. Official Recognition of E-Sports

For the first time, e-sports has been recognised as a legitimate sport. The government plans to create a structured ecosystem for e-sports tournaments, training academies, and research centres, while also integrating it into the national sports policy. This recognition aims to nurture professional gaming careers in India, putting them on par with other sports.

3. Promotion of Social & Educational Games

The Bill encourages the development of safe, cultural, and educational games. Special focus will be given to age-appropriate and value-driven games that align with Indian traditions. Dedicated platforms will be created to promote these forms of gaming, helping children and youth engage in constructive entertainment.

4. National Online Gaming Authority

A new National Online Gaming Authority (NOGA) will be established to regulate the sector. Its responsibilities will include:

• Categorisation and registration of online games
• Ensuring compliance with government guidelines
• Addressing user complaints
• Issuing regulations for emerging formats of online games

5. Stringent Penalties for Violations

The Bill prescribes heavy penalties for violators:

• Operators of money gaming platforms: Up to 3 years imprisonment and/or ₹1 crore fine
• Advertisements for banned games: ₹50 lakh fine or up to 2 years jail
• Repeat offenders: 3–5 years’ imprisonment and fines up to ₹2 crore

Financial Restrictions

Banks and payment platforms have been prohibited from processing transactions related to online money gaming. This ensures that financial systems are not misused for illegal gaming operations.

IT Act Enforcement

Existing online money gaming applications will be blocked under the Information Technology Act, 2000, preventing them from operating in India.

Additional Provision: Age & Safety Norms

The Bill also empowers the government to set age restrictions and data protection norms for online gaming platforms. This provision is intended to safeguard minors from exposure to harmful content and ensure that user data is handled securely by registered platforms.

Government’s Standpoint

According to the government, the ban is necessary to curb the rising instances of gaming addiction, financial distress, suicides, money laundering, terror financing and tax evasion. With stricter oversight, the Bill aims to protect vulnerable sections of society while promoting responsible gaming practices.

Impact on India’s Gaming Industry

The decision will have far-reaching consequences on India’s $3.8 billion online gaming industry, particularly affecting leading platforms like Dream11, Games24X7 and Mobile Premier League (MPL). While these companies face significant disruption, the Bill opens new opportunities in e-sports and educational gaming, which are now expected to receive government recognition and support.

Conclusion

The passage of the Promotion and Regulation of Online Gaming Bill, 2025 marks a decisive shift in India’s digital gaming landscape. By banning real-money gaming while recognising e-sports and encouraging educational games, the government seeks to strike a balance between protecting citizens and promoting innovation. Though the move poses challenges for existing money gaming operators, it sets the stage for a more transparent, secure and socially beneficial gaming ecosystem in the years to come. For any professional consultation, do contact to CRSPL Business Consultants.