Online Gaming Bill To Be Introduced In Parliament On Wednesday

The government will introduce the Promotion and Regulation of Online Gaming Bill, 2025 in the Parliament on Wednesday, after Cabinet approval on Tuesday. The proposed law seeks to ban advertising and endorsements of platforms offering real-money games and bars banks and NBFCs from processing related transactions.

The legislation prescribes tough penalties such as up to three years in prison and a fine of Rs 1 crore. Endorsing or advertising such platforms may lead to two years in jail and a Rs 50 lakh fine, while facilitating fund transfers could draw similar penalties as service providers.

The Bill aims to fill a regulatory vacuum, as states currently enforce varied gambling laws and courts have delivered inconsistent rulings on the skill-versus-chance debate. Rising in-app purchases, virtual currencies and reward systems have further blurred boundaries.

The Bill also addresses concerns over gaming addiction, mental health, financial losses, and the risk of platforms being misused for money laundering and terror financing. It stresses aligning India's fast-growing digital gaming industry with national interests, public safety and ethical business practices.

To regulate the sector, the Bill proposes creating or designating an authority to categorise and register online social games. Setting up a new regulator would require Rs 50 crore in initial capital expenditure and Rs 20 crore annually for operations.

This move is set to directly impact platforms such as Dream11, MPL, Probo, Rummy and Poker operators. By contrast, the Bill draws a clear line between money games and online social games, which may charge for access but cannot involve stakes or wagers. Titles such as Ludo King, Roblox, or educational skill-development games fall in this category.

Separately, e-sports are recognised as competitive, multi-player sporting events, akin to physical sports, with outcomes determined by dexterity, strategy and agility. These can offer performance-based prize money but are insulated from any betting or staking elements.

The proposed framework, a copy of which NDTV Profit has seen, aims to curb betting-linked harms while supporting innovation in e-sports and recreational gaming. If passed, the ban would deal a blow to India's multi-billion-dollar fantasy sports and online card gaming industry.