The Rajya Sabha on Thursday cleared the Promotion and Regulation of Online Gaming Bill, 2025 without discussion, a day after its passage in the Lok Sabha.
The said Bill bans all online games played with money, in a bid to curb addiction, money laundering, suicides and financial fraud linked to such platforms.
The legislation, passed by voice vote amid opposition protests, prohibits not just the offering of online money games but also their advertisements. It further bars banks and financial institutions from facilitating or transferring funds for these activities.
Minister of Electronics and Information Technology Ashwini Vaishnaw made brief remarks before the Bill’s passage.
The government has also highlighted that the Bill aims at the 'greater good' for the society. According to a PTI report, the Centre has estimated that around 45 crore people lose close to Rs 20,000 crore every year in online real money gaming. Meanwhile, the online gaming industry has warned that the proposed Bill banning all real money games could kill over two lakh jobs, shut down 400 companies, and hurt India’s digital innovation. Industry bodies said the sector, valued at ₹2 lakh crore with ₹31,000 crore revenue and ₹20,000 crore in taxes, faces a “death knell” if the law is passed.
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S Krishnan, secretary at the Ministry of Electronics and Information Technology (MeitY), told ET that the government’s approach is to draw a line between innovation and exploitation. “The government is of the view that India has the potential to be the gaming hub of the world with many game developers and creators thriving. For this, the legitimate areas within online gaming need to be delineated, recognised and promoted; that is esports and online social games—both educational and recreational. The other real concern is online money gaming. These games involve staking money with uncertain outcomes, often blurring the line between skill and chance. They carry risks of addiction, money laundering and misuse through cryptocurrency. Regular online gaming, esports and creative gaming are not the problem; we want to encourage those.”
He added that the new law aims to separate harmful practices from genuine gaming innovation. “Our position is clear: we are drawing a line between promoting innovation and esports on one side and regulating exploitative money gaming on the other. The aim is to safeguard people while also strengthening India’s gaming ecosystem.”
Also Read: Online money gaming has become a bigger issue than drugs: Ashwini Vaishnaw
Krishnan underlined that esports and other recognised formats will continue to receive support. “Esports, like chess and other globally recognised games, fall under the Ministry of Youth Affairs and Sports. The government has also been actively promoting the animation, visual effects, gaming and comics (AVGC) sector through initiatives like the Indian Institute of Creative Technologies in Mumbai and the Centres of Excellence under Software Technology Parks of India. These will continue. Our restrictions are aimed only at harmful money games.”
According to the Bill, any online money game, where users deposit money in expectation of monetary or material reward, will now be outlawed. This includes fantasy sports, card games such as poker and rummy, online lotteries, and other betting or gambling platforms.
Once the law is cleared by both Houses of Parliament, offering or facilitating such games will attract imprisonment of up to three years and/or a fine of up to ₹1 crore.
The said Bill bans all online games played with money, in a bid to curb addiction, money laundering, suicides and financial fraud linked to such platforms.
The legislation, passed by voice vote amid opposition protests, prohibits not just the offering of online money games but also their advertisements. It further bars banks and financial institutions from facilitating or transferring funds for these activities.
Minister of Electronics and Information Technology Ashwini Vaishnaw made brief remarks before the Bill’s passage.
The government has also highlighted that the Bill aims at the 'greater good' for the society. According to a PTI report, the Centre has estimated that around 45 crore people lose close to Rs 20,000 crore every year in online real money gaming. Meanwhile, the online gaming industry has warned that the proposed Bill banning all real money games could kill over two lakh jobs, shut down 400 companies, and hurt India’s digital innovation. Industry bodies said the sector, valued at ₹2 lakh crore with ₹31,000 crore revenue and ₹20,000 crore in taxes, faces a “death knell” if the law is passed.
Also Read: Nazara’s ₹800 crore PokerBaazi bet at risk of being written off
S Krishnan, secretary at the Ministry of Electronics and Information Technology (MeitY), told ET that the government’s approach is to draw a line between innovation and exploitation. “The government is of the view that India has the potential to be the gaming hub of the world with many game developers and creators thriving. For this, the legitimate areas within online gaming need to be delineated, recognised and promoted; that is esports and online social games—both educational and recreational. The other real concern is online money gaming. These games involve staking money with uncertain outcomes, often blurring the line between skill and chance. They carry risks of addiction, money laundering and misuse through cryptocurrency. Regular online gaming, esports and creative gaming are not the problem; we want to encourage those.”
He added that the new law aims to separate harmful practices from genuine gaming innovation. “Our position is clear: we are drawing a line between promoting innovation and esports on one side and regulating exploitative money gaming on the other. The aim is to safeguard people while also strengthening India’s gaming ecosystem.”
Also Read: Online money gaming has become a bigger issue than drugs: Ashwini Vaishnaw
Krishnan underlined that esports and other recognised formats will continue to receive support. “Esports, like chess and other globally recognised games, fall under the Ministry of Youth Affairs and Sports. The government has also been actively promoting the animation, visual effects, gaming and comics (AVGC) sector through initiatives like the Indian Institute of Creative Technologies in Mumbai and the Centres of Excellence under Software Technology Parks of India. These will continue. Our restrictions are aimed only at harmful money games.”
According to the Bill, any online money game, where users deposit money in expectation of monetary or material reward, will now be outlawed. This includes fantasy sports, card games such as poker and rummy, online lotteries, and other betting or gambling platforms.
Once the law is cleared by both Houses of Parliament, offering or facilitating such games will attract imprisonment of up to three years and/or a fine of up to ₹1 crore.
