President Issues Assent To Online Gaming Bill That Cracks Down On Real-Money Games

President Droupadi Murmu on Friday issued her assent to the Promotion and Regulation of Online Gaming Bill, 2025, which was passed by the Parliament's Upper House a day earlier.

The legislation, which has now turned into a law, cracks down on real money-based gaming, while promoting e-sports and online social games.

The legislation prohibits advertising or endorsements of platforms facilitating online games that involve monetary transactions. It proposes to bar banks, as well as non-banking financial bodies, from facilitating any transaction involving online money games.

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

The rise of in-app purchases, virtual currencies and reward systems has only blurred these legal boundaries further, creating the need for a centralised framework.

The law 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.

Penalties proposed under the Bill include up to three years in prison and a fine of Rs 1 crore for any person offering online money gaming services. Those involved in advertising or endorsing such platforms may face up to two years in jail along with a Rs 50 lakh fine.

Similarly, anyone facilitating transactions or fund transfers for online gaming could face three years of imprisonment and penalties up to Rs 1 crore.