Published Aug 20, 2025 | 2:31 PM ⚊ Updated Aug 20, 2025 | 2:31 PM
Online gaming. Representative Image. (iStock)
Synopsis: Union Minister Ashwini Vaishnaw tabled the Promotion and Regulation of Online Gaming Bill, 2025, in the Lok Sabha. The Bill aims to ban all online games where gambling, betting or other financial transactions. Meanwhile, Opposition leaders raised their voices against the Bill, saying that a complete ban would be disastrous and that regulation is the only way to safeguard citizens.
Union Minister of Information & Broadcasting and Electronics & Information Technology Ashwini Vaishnaw on Wednesday, 20 August, tabled the Promotion and Regulation of Online Gaming Bill, 2025, in the Lok Sabha.
The Bill aims to ban all online games where gambling, betting or other financial transactions.
According to the government, the legislation aims to promote and regulate the online gaming sector, including e-sports, educational games and social gaming, the appointment of an authority for coordinated policy support and strategic development, and regulatory oversight of the sector.
If made an Act, it will prohibit the offering, operation, facilitation, advertisement, promotion and participation in online money games, particularly where such activities operate across state borders or from foreign jurisdictions.
The Bill says violations will attract stringent penalties: Up to three years’ imprisonment or a fine of ₹1 crore for offering money gaming services, two years or a ₹50 lakh fine for advertising them, and similar punishments for financial facilitation.
Meanwhile, Karnataka Information Technology Minister Priyank Kharge and other Opposition leaders raised their voices against the Bill, saying that a complete ban would be disastrous and that regulation is the only way to safeguard citizens.
The government said in the draft bill that it aims to protect individuals, especially youth and vulnerable populations, from the adverse social, economic, psychological and privacy-related impacts of such games and to ensure the responsible use of digital technologies.
It is also aimed at safeguarding the integrity of financial systems and establishing a uniform, national-level legal framework.
The Union government said in the Bill that the absence of a clear and supportive legal framework has slowed the structured growth of India’s online gaming sector and raised concerns over responsible gaming practices. Experts say urgent policy intervention is needed to safeguard players and bring accountability to the industry.
It also flagged the use of manipulative design features, addictive algorithms, bots, and undisclosed agents in many platforms, which undermine fairness and transparency while encouraging compulsive behaviour that can lead to financial distress.
Unregulated online money gaming has also been linked to financial fraud, money laundering, tax evasion, and even terror financing — posing risks to national security, public order, and state integrity. Many of these platforms operate from offshore jurisdictions, bypassing Indian laws and creating major enforcement challenges.
The proposed legislation will cover all of India and apply to services offered within or outside the country’s borders. It also empowers the Union government to recognise e-sports as a legitimate competitive sport, with measures such as:
In addition, the Bill proposes to recognise and promote online social games for recreational and educational purposes.
At the same time, it seeks to impose strict bans on online money games. No individual or entity will be allowed to offer such services, advertise them, or facilitate financial transactions linked to them. Banks and financial institutions will also be barred from processing payments for these games.
To enforce the provisions, the Union government may constitute or designate an authority.
The Bill further clarifies that actions taken in good faith by the government or designated authority will not invite legal proceedings. In case of conflict with existing laws, the provisions of this Act will take precedence.
Kharge questioned the government, asking why the government isn’t stepping up even after the industry is openly seeking regulation.
“Regulation is the only way to safeguard our citizens, without it, they’ll be pushed to playing on offshore servers in China or other countries which is beyond our reach of protection. Modiji’s masterstroke will not only have disastrous effects on the industry and jobs, but will also ensure that more people are pushed into the black hole of real money gaming with no accountability,” he wrote in a post on X.
Thiruvananthapuram MP Shashi Tharoor expressed concern over the government’s move, arguing that such prohibitions tend to push the activity underground and strengthen criminal networks.
He pointed out that, instead of banning, several countries have opted to regulate and tax online gaming, turning it into a legitimate source of revenue for public welfare.
Tharoor observed that the Indian government has chosen the opposite path, and with Parliament functioning poorly, the bill is likely to get cleared without meaningful debate.
Sivaganga MP Karti Chidambaram said the Bill, introduced without industry consultation, is a knee-jerk reaction that could prove counterproductive. It risks creating significant national security concerns by driving financial transactions offshore and pushing users toward the dark web.
“The bill threatens to eliminate 400,000 jobs, erase ₹20,000 crore in GST and TDS revenue (2024 data), and wipe out $6 billion in investments, while stifling future funding opportunities for game developers and related sectors. The government should refer the bill to a select committee and hold public hearings to ensure a balanced and informed approach,” he said in a post on X.
(Edited by Muhammed Fazil.)
