Online Gaming Bill: 'Rs 20,000 Crore Losses To Victims' Prompted Stringent Legislation, Say Sources

The Centre's stringent law against money-based online gaming—The Promotion and Regulation of Online Gaming Bill, 2025—was prompted by an estimated Rs 20,000 crore losses borne by players annually and a rising tide of social distress linked it, government sources told NDTV Profit.

Widespread social distress, including family violence, bankruptcies, and even suicides, along with strong representations from Members of Parliament on the matter, prompted the Centre to bring forward this Bill, they added.

The losses from online money gaming are estimated at Rs 20,000 crore annually, with nearly 45 crore people affected by such platforms, according to people in know.

They further added that the online money gaming companies may now have to change their models in order to survive under the new regime. However, players, will be recognised as victims rather than perpetrators.

Additionally, the Finance Ministry unanimously backed the Bill, despite acknowledging that it would result in a hit to GST collections. Officials said the government had consciously chosen to prioritise social concerns over revenue.

Government sources confirmed that had the algorithms been kept transparent, something could have been considered.

Under the new law, all online gaming will come under the Centre’s purview. Offline gambling and betting, however, will continue to remain subject to state laws, with their legality depending on individual state regulations. A new regulatory authority will be established to oversee compliance, licensing, and sectoral growth.

Importantly, the Bill distinguishes between different segments of online gaming. Two-thirds of the sector – including social and e-sports platforms – will be promoted, while the one-third involving money-based games is being discouraged.

According to sources, the decision followed three and a half years of deliberations.

The government had initially proposed a self-regulatory body for the industry. However, conflicts of interest within the sector led to the rejection of that approach. The Bill instead lays down a centralised framework for regulation and consumer protection.