The Central government is set to introduce the Promotion and Regulation of Online Gaming Bill, 2025 in the Lok Sabha today, seeking to prohibit all forms of online money gaming—whether based on skill, chance or a mix of both.
If enacted, the Bill will mark a sharp departure from the long-standing legal distinction between games of skill and games of chance, holding that any game involving monetary stakes or expectation of financial gain will be unlawful.In a stringent move, the Bill proposes to classify offences relating to both the operation of online money games and the processing of financial transactions linked to them as cognisable and non-bailable.
This would empower enforcement agencies to arrest without warrant anyone suspected of violating the prohibition, begin investigations directly, without prior sanction from a magistrate, carry out search and seizure operations in physical premises and digital spaces, including computer systems, storage devices and virtual platforms. Officers may also override passwords or security codes to gain access. The proposed law also envisages the creation of a national regulatory authority for online gaming.
The Key provisions include blanket ban on money games which implies online game that involves users depositing money or stakes in return for the possibility of monetary rewards would be prohibited. This includes skill-based formats like Rummy or fantasy sports if they involve cash participation.
There is a provision of strict penalties: Violators could face up to three years’ imprisonment or fines of Rs 1 crore. Repeat offenders may face mandatory minimum jail terms and fines of up to Rs 2 crore. Promoting or advertising money games may also result in up to two years in prison or fines of Rs 50 lakh.
It incorporates ban on financial facilitation: Banks, payment providers and other financial intermediaries would be prohibited from processing or authorising transactions related to money gaming.The Bill also envisages proposal to set up National authority on gaming, a statutory body to register and categorise online games, decide whether a particular offering qualifies as a money game and issue directions or codes of practice.
Important of all is the recognition of e-sports under which Competitive digital games played under sporting rules would be recognised as a legitimate sport, with provision for training academies, research centres and integration into national sporting policy.
Besides, there is a provision for promotion of social and educational games.The government has justified the proposed prohibition by pointing to the grave social, economic, and psychological harm caused by money gaming.
The Statement of Objects and Reasons highlights the use of “manipulative design features, addictive algorithms, bots and undisclosed agents” that undermine fairness and encourage compulsive play. In order to address financial distress and health impacts, Centre says that evidence points to individuals - especially the youth and economically weaker groups - facing financial ruin, indebtedness and psychological harm, with consequences for families and communities. The Statement also says that platforms have been connected to money laundering, tax evasion, fraud and even terrorism financing, raising concerns over national security.
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