Online Gaming Bill 2025: Lok Sabha passes Bill banning money games, promoting eSports and social gaming

The Promotion and Regulation of Online Gaming Bill, 2025, marks a decisive step in India’s digital journey. It recognises the dangers of unregulated money gaming and responds with firm safeguards to protect citizens. At the same time, it carves out space for e-sports and educational games that nurture skills and creativity. By balancing innovation with responsibility, the Bill sets the tone for a safer and healthier digital future.

Online gaming firms were required to comply with KYC norms, and uphold measures to safeguard children through measures for parental access control alongside age rating mechanisms based on the nature and type of content. The Act further also attempts to address concerns about opaque algorithms, undisclosed bots, and manipulative engagement tactics that undermine fairness and transparency. It also recognizes the connection between certain gaming platforms and illegal activities including financial fraud, money laundering, and terrorism financing, thereby positioning gaming regulation as a matter of national security. Millions of users, particularly youth, play different types of online games every day that have monetary stakes and skill-based games. Although this popularity is a boom to the economy, it also causes addiction, fraud, money laundering, and gambling among children.

• Further, compliance with FEM (Deposit) Regulations, 2016, will also have to be ensured, as these govern foreign currency accounts in India.
• “While this chapter pauses here, we remain hopeful that the future will once again allow us to celebrate the game we all love,” the PokerBaazi statement added.
• The Rajya Sabha passed it the next day and the Bill became law after receiving Presidential Assent on August 22.
• By doing so, the Bill ensures that India can embrace the benefits of digital innovation while protecting its people from the darker side of online gaming.

30 of the Contract Act.’ It can thus be concluded that the essential requirement of a wagering agreement is that a wager should be based on anuncertain event. The distinction between skill and chance is not always clear-cut, leading to legal challenges and varying interpretations across jurisdictions. This ambiguity has resulted in a fragmented regulatory environment, where the same game may be considered legal in one state and illegal in another. For listed companies such as Nazara Technologies, the impact is already visible in falling share prices.

Goa allowed gambling under Goa, Daman Diu Public Gambling Act 1976 which was amended later on to allow slot machines at 5 Star Hotels. These states have issued licenses to operators who comply with their respective regulatory frameworks. They offer online casinos, sports betting, and other forms of gambling that are permissible under their laws. The Promotion and Regulation of Online Gaming Act, 2025 (“Act”) represents a watershed moment for India’s digital economy, setting out a robust national regulatory regime for the rapidly expanding online gaming sector. The Act seeks to resolve regulatory patchiness, protect vulnerable users, and stimulate growth while instituting strict prohibitions on real-money gaming. Below is a detailed analysis covering the Act’s legislative background, salient provisions, comparative framework, and practical implications for the Indian online gaming ecosystem.

Moreover, the handling of player complaints and disputes is regulated to ensure timely and just resolutions. Regulatory authorities oversee these processes, protecting players from potential malpractice and enhancing the overall integrity of the online gambling industry. Consumer protection policies in online gambling aim to ensure safe and fair practices for players.

IT Minister Ashwani Vaishnaw clarified in a statement that no penal action for players has been codified. The significant rise of online gaming in the Indian context has given rise to its own set of multifaceted regulatory impediments. This becomes especially relevant in the context of various formats and mechanisms pertaining to the operation of such online gaming platforms. Such games may be played for real money where the apprehensions pertaining to the nature of games being in the nature of betting, gambling, or wagering arise.

These regulations safeguard against fraud, promote responsible gambling, and provide avenues for dispute resolution. Players are informed about their rights and available resources, fostering a trustworthy gaming environment. Licensing bodies are organizations responsible for granting licenses to online gambling operators, ensuring that they adhere to established legal and regulatory standards.

It also strengthens India’s standing as a nation that can lead in shaping global digital policy. The Central Government to have the authority to frame rules for the promotion of e-sports and social games, the recognition and registration of online games, and the functioning of the Online Gaming Authority. Offering or facilitating online money games can lead to imprisonment of up to three years and a fine of up to one crore rupees.

C) Increased compliance requirements (registration, KYC, data handling, audit, etc.) for non-monetary platforms. A)    “Online game” encompasses any game played on an electronic or digital device, managed as software, via the internet or other digital means. In August 2025, the Bill was debated in the Parliament following calls by several stakeholders.

Online gaming or fantasy sports platforms generally allow users to participate in various games. Many of these platforms offer the chance to win real money, raising several concerns about their operations, taxability, etc. The regulation of gaming and gambling in India dates back to the Public Gambling Act of 1867, a colonial-era statute that remains the cornerstone of gambling legislation in the country. The Act prohibits the operation of public gambling houses and criminalises participation in such activities. However, the Act is limited in scope and does not address the complexities of online gaming, a sector that emerged long after the Act was promulgated.

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In this context, it’s important to note that even in states where online gambling is permitted, certain restrictions and regulations may apply. For instance, there may be age restrictions, requirements for obtaining licenses, and limitations on the types of games or bets that can be offered. Offering online money games or engaging in transaction or authorisation of funds for the same will be punishable with imprisonment of up to three years, a fine of up to ₹1 crore, or both. Unlawful advertisement will be punishable with imprisonment of up to two years, a fine of up to ₹50 lakh, or both. Under the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, offences shall be cognisable and non-bailable.

These institutions assess the qualifications and operational capabilities of gambling platforms before permitting them to offer services. Moreover, international organizations also contribute to standardization and best practices in online gambling regulations. Entities like the European Gaming and Betting Association (EGBA) advocate for responsible gambling and fair competition.

The Lok Sabha cleared the Promotion and Regulation of Online Gaming Bill, 2025, on Wednesday. The bill, which essentially bans online gaming apps that require users to pay money to win cash, now needs the President’s signature to become a law. The move affects India’s $3.8 billion gaming industry, which has drawn global investors and fostered fantasy sports apps like Dream11, Games24X7 and Mobile Premier League. Additionally, Nazara Technologies Ltd.—the only listed gaming firm in India—is weighing a writedown of its stake in PokerBaazi—an online betting app. Police on Friday (7th july 2017) busted an illegal online casino at Kotla Mubarakpur in south Delhi and arrested four persons in this connection, Deepak Chandra, Raj Kumar, Arif Khan and Prakash have been arrested. Deepak used to operate the gambling den and handle all the cash and maintain transaction details.

Online Gaming Bill 2025: New Rules to Protect Players and Regulate Digital Gaming in India

This digital enforcement mechanism can effectively shut down platforms at the infrastructure level, making them inaccessible to Indian mostbet official website users regardless of their physical location. Regulatory authorities monitor online gambling operations through audits, inspections, and investigations. They can impose fines, suspend licenses, or permanently revoke the licenses of operators who fail to adhere to established standards. Such enforcement actions are vital for deterring non-compliance and fostering a responsible gaming environment.

At the same time the online gaming sector is one of the most dynamic and fast-growing segments of the digital and creative economy. The sector offers immense opportunities for innovation, employment generation and global competitiveness. However, there is a lack of coherent and enabling legal framework that can promote structured growth of the sector and allow responsible gaming practices to evolve. As online platforms continue to grow, the future of Gaming and Gambling Laws in India remains uncertain. While some states push for stricter regulations, others are opening doors to legalize and regulate skill-based gaming.

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The lack of a unified legal framework has resulted in a challenging environment for online gaming operators and players alike. However, this “sledgehammer approach” raises questions of proportionality and the economic impact on a sector that has generated substantial employment and attracted significant investment. By opting for prohibition over regulation, the legislature has prioritized immediate harm prevention over industry accommodation, marking a significant shift in India’s approach to the digital economy. They enforce measures that safeguard players from fraud and ensure responsible gaming practices. By monitoring operators, these authorities help to create a safe gambling environment for users, maintaining public trust in the online gambling sector. Key entities involved in online gambling regulations include regulatory authorities and licensing bodies.

Investigations will follow the provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023, which governs criminal procedure in India. Betting has made some amazing progress since Ancient Egypt, with the web based betting world ceaselessly developing in 2015 and past. Join the rich history of betting by attempting one of our suggested locales, offering benefits that incorporate. In the end, it’s a balancing act—ensuring innovation thrives while keeping a strong focus on legality and consumer welfare.

It reflects the Government’s resolve to safeguard families while guiding the digital economy towards safe and constructive growth. The evolving landscape of online gaming and gambling in India highlights the urgent need for a more cohesive and modern legal framework. As state-specific regulations create a fragmented system, platforms navigate legal uncertainties, raising questions of consumer protection and market consistency. A centralized regulatory body, akin to models in the UK or Malta, could offer clarity, foster innovation, and ensure robust safeguards for users, addressing both legal ambiguities and the growing demand for fair and regulated digital entertainment spaces. In 2023, the Indian government reclassified GST brackets for online gaming along with casinos and horse racing, putting them in the same bracket as lotteries and betting. In October 2023, it imposed a uniform 28% GST on the entire entry fee/deposit, instead of platform commission.