The Lok Sabha has passed the Promotion and Regulation of Online Gaming Bill 2025, a significant move to regulate India’s booming online gaming industry. The new law aims to reduce risks from gambling, prevent misuse of online gaming platforms, and encourage safe, skill-based games. Real-money games are now banned, and anyone violating the rules will face strict penalties. A central body with an initial fund of Rs 50 crore will monitor compliance, register online games, and handle player complaints. While the government emphasises youth protection and public safety, industry groups have raised concerns about revenue loss and the potential impact on gaming start-ups.
Key Features of Online Gaming Bill 2025
- Ban on real-money games: All online games that involve staking money for the chance to win cash are now prohibited. This includes betting apps, fantasy sports, poker, rummy, and similar platforms. Banks and payment services are barred from handling transactions related to these games.
- Strict penalties: Anyone caught breaking the rules could face up to three years in prison. Repeat offenders may be fined up to Rs 1 crore. All violations are considered serious, non-bailable, and cognisable, allowing authorities to act immediately without a warrant.
- National Online Gaming Authority: A central body with an initial fund of Rs 50 crore will register games, monitor compliance, address grievances, and recommend blocking non-compliant platforms.
- Promotion of e-sports and social games: E-sports will receive official recognition and support, including training centres and special incentives. Educational and social games are encouraged, provided no real money is involved.
- Enforcement powers: Authorities can search, seize, and monitor both digital and physical spaces. Platforms violating the rules can be blocked under Section 69A of the IT Act.
- Government rationale: The bill addresses gaming addiction, mental health issues, financial distress, and misuse of platforms for money laundering or terror financing. It replaces inconsistent state laws with a uniform national framework.
