The Rajya Sabha on Thursday passed the Promotion and Regulation of Online Gaming Bill, 2025, which outlaws real-money games. The bill was approved through a voice vote.
The online gaming bill was passed by the Lok Sabha a day ago and will now head to the President for approval.
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.
Union Minister Ashwini Vaishnaw told the Rajya Sabha that the government is working hard to curb the menace of illegal activities. "Crores od rupees have been embezzled via such applications. The Bill drafted after much deliberation. We need to protect our youth," he said.
Concerns like addiction among children and youth, mental health issues, financial losses, cross-border and inter-state operations facilitating in some cases of money laundering and terror financing, form some of the focal points of the Bill.
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.
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 the know.
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.
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