The Lok Sabha approved the Promotion and Regulation of Online Gaming Bill, 2025, through a voice vote despite protests from opposition members. The law bans online games played with money stakes to curb excessive addiction, money laundering, and financial fraud.
It also prohibits advertisements of such games and bars banks and financial institutions from enabling or processing related transactions. Electronics and IT Minister Ashwini Vaishnaw briefed the House on the bill, which aims to regulate the growing online gaming sector while protecting consumers.
Key Provisions and Objectives of the Bill
The new legislation targets online games involving real-money stakes, explicitly banning such games to address rising concerns over gambling addiction and the misuse of gaming platforms for illicit financial activities. A crucial component of the bill is the prohibition of advertising money-based online games to reduce their influence, especially on vulnerable populations. To seal financial loopholes, banks and financial institutions are barred from facilitating payments for these games. The bill’s passage marks a critical step by the government to effectively regulate the booming online gaming industry, ensuring user protection and legal clarity.
Industry Appeals for Intervention Against Blanket Ban on Real-Money Skill Games
Representing India’s burgeoning online skill-gaming sector, three major industry bodies, the All India Gaming Federation (AIGF), Federation of Indian Fantasy Sports (FIFS), and E-Gaming Federation (EGF), have jointly written to Union Home Minister Amit Shah, seeking urgent intervention against the proposed blanket ban on all real-money games, including skill-based games.
The letter, highlighted by Livemint, voices concern that the bill could deal a severe blow to an industry valued at over ₹2 trillion, employing over 200,000 people, and contributing significantly in revenue and taxes. The industry warns that the prohibition of skill-based real-money games such as fantasy sports, online rummy, and poker would not only destroy thousands of jobs but also deter investment and drive users toward illegal offshore platforms, increasing risks of fraud and loss of tax revenue.
Leaders emphasise the need for regulatory frameworks that differentiate between games of chance and skill to allow innovation while protecting users. The government, however, prioritises addressing addiction, money laundering, and financial fraud associated with real-money gaming, aiming to regulate the sector in the public interest.
Background: Rising Challenges in Online Gaming Sector
India’s online gaming industry has experienced rapid growth, making it one of the largest markets globally. However, this expansion has led to new challenges, including addiction, illegal money flows, and financial scams exploiting gaming platforms. Previous regulatory attempts struggled due to the complexity of distinguishing gambling from skill-based gaming.
The Promotion and Regulation of Online Gaming Bill presents a comprehensive approach designed to address these issues by banning monetary games and introducing strict controls on advertisements and financial transactions. While the gaming industry has voiced concerns about potential over-regulation impacting innovation, the government stresses the need to prioritise public safety and financial integrity.
The Logical Indian’s Perspective
The Logical Indian supports efforts to curb gambling addiction and financial fraud through prudent regulation of online gaming. However, while regulation is necessary, it must be balanced to protect genuine skill-based gaming and innovation in India’s digital economy.
Constructive engagement between policymakers, industry leaders, and civil society is essential to develop policies that both safeguard users and foster growth.
