The Promotion and Regulation of Online Gaming Bill, 2025, introduced in the Lok Sabha by IT Minister Ashwini Vaishnaw on Wednesday, August 20, 2025, proposes a blanket ban on online games involving money. The bill aims to address concerns about addiction, financial losses, and potential national security threats associated with real-money gaming. While it seeks to curb harmful practices, the bill has sparked significant debate and ignited concerns within the rapidly growing online gaming industry.

Inside the Blanket Ban

The Online Gaming Bill, 2025, proposes a complete ban on online games with a monetary component, regardless of whether the game involves skill or chance. This marks a crucial departure from previous regulatory interpretations. The bill defines an "online money game" as one played by a user by paying fees, depositing money, or other stakes, in expectation of winning money or other stakes. This definition encompasses a wide range of games, potentially impacting popular platforms like Dream11, MPL, and Probo, as well as operators offering rummy and poker.

Anyone offering online money gaming services in violation of the law could face imprisonment of up to three years or a fine of up to ₹1 crore, or both. Those found advertising such services could face up to two years of jail and/or a fine of up to ₹50 lakh. Banks and financial institutions facilitating transactions for money games will also be liable to penalties, including up to three years in jail or a fine of ₹1 crore. The bill, however, does not criminalize players of online money games, treating them as victims rather than offenders.

The bill also seeks to establish a statutory regulatory authority with powers to determine whether a game qualifies as an online money game. All platforms will have to register and comply with the rules set by the authority. This body will register games, flag real-money formats, and replace the self-regulatory framework the IT ministry had floated in 2023.

Big Exemptions

While the bill proposes a blanket ban on real-money gaming, it explicitly excludes eSports and online social games such as casual entertainment or skill-based formats that do not involve monetary stakes. The government is considering professional tournaments, organized competitions, and gaming as a sport. This definition separates e-sports from online gambling-style games, which the bill calls "money games," which are titles where cash or valuables are at stake.

A National e-Sports Authority will be established to promote fair play and oversee the industry. This central body will oversee and promote competitive gaming, register online social games, issue rules for fair play, safety, and compliance, and work with state governments to integrate e-sports into local policies. The government recognizes that India could become the gaming capital of the world and legitimate games without any money aspect will be promoted.

Industry Fallout

The online gaming industry has raised alarms, warning that the proposed blanket ban could trigger large-scale job losses and the shutdown of companies. Industry bodies like the All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and the Federation of India Fantasy Sports (FIFS) have voiced strong concerns about the bill's potential consequences. The AIGF has written to Union Home Minister Amit Shah, seeking urgent intervention and stressing the need for "progressive regulation" rather than outright prohibition.

The industry warns that the proposed ban could destroy over 2 lakh jobs, result in over 400 companies shutting down, and weaken India's position as a digital innovator. The online gaming sector employs more than 200,000 professionals across 400+ startups and has drawn ₹25,000 crore in FDI. Executives also fear the government could lose ₹20,000 crore in taxes if a blanket ban goes through.

Market leaders like Dream11, Games24x7, Winzo, GamesKraft, 99Games, KheloFantasy, and My11Circle are now facing an existential crisis. India's online gaming market is currently valued at $3.7 billion and was projected to more than double to $9.1 billion by 2029. However, nearly 86% of today's revenue comes from real-money formats.

The advertising industry also faces a potential shock. A blanket ban on Real Money Gaming (RMG) could wipe out nearly ₹2,000 crore in annual advertising expenditure, gutting marketing budgets and dealing a devastating blow to broadcasters, OTT platforms, and digital giants such as Meta and Google.

Some experts believe that the bill is unconstitutional and not sustainable in law. They argue that "betting and gambling" as well as "amusements and entertainments" are squarely state subjects, and Parliament lacks legislative competence.