India Targets Real-Money Gaming With Nationwide Bill
India is advancing towards its first nationwide law to regulate online gaming with monetary stakes. The Promotion and Regulation of Online Gaming Bill, 2025, approved by the Union Cabinet led by Prime Minister Narendra Modi, sets the stage for a unified legal framework intended to curb real-money online platforms while promoting safer digital entertainment spaces.
Clear Rules for a Growing Industry
Union Minister for Electronics and Information Technology Ashwini Vaishnaw formally presented the bill in the Lok Sabha, where opposition protests caused a brief adjournment of the session. The proposal is designed to replace the current patchwork of state-level rules with a standardized approach to regulation.
The bill defines an online money game as any digital game requiring a payment, deposit, or stake in exchange for the chance to win money or rewards. In contrast, eSports and casual products without financial stakes will remain unaffected and are set to receive structured support from the government.
According to S Krishnan, Secretary of MeitY, the move is driven by societal needs and public safety. “This is a societal decision,” he said, pointing out that the industry had been seeking clarity between harmful money games and segments that drive creativity and innovation. He added that a new regulatory authority will oversee the classification of games, ensuring clear rules and compliance for operators and users alike.
Severe Penalties for Violators
The draft legislation imposes stringent penalties for those operating or enabling real-money online gaming platforms. Operators could face up to three years of imprisonment or fines up to ₹1 crore (about $120,000). Those promoting or advertising such platforms risk up to two years in jail and fines reaching ₹50 lakh. Financial institutions handling related transactions would also be subject to the same penalties.
Repeat offenders would face even harsher consequences, including prison terms of up to five years along with heavier fines. However, the bill makes a critical distinction by excluding players from prosecution, framing them as victims of harmful systems rather than perpetrators.
Public Safety Versus Industry Concerns
The government has emphasized that the legislation prioritizes protection against exploitation, citing growing concerns about addiction, fraud, and mental health risks linked to online money gaming. Cases of financial distress and suicides have fueled calls for stronger oversight.
Healthcare leaders have voiced support for the proposal. Preetha Reddy, Executive Vice Chairperson of Apollo Hospitals, commented on X, “The new Online Gaming Bill is more than regulation, it is protection. Online money games have left children and youth vulnerable to exploitation and serious mental health risks. This step puts wellbeing first, ensuring our future generations grow with balance and dignity.”
In sharp contrast, industry groups including the All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and Federation of India Fantasy Sports (FIFS) warn of massive disruption. In a letter to Home Minister Amit Shah, they cautioned that the bill could “destroy over 2 lakh jobs, result in over 400 companies shutting down, and weaken India's position as a digital innovator.”
They further noted that legitimate platforms could be forced out of the market, driving millions of players toward illegal offshore operators and unregulated networks. The industry also highlighted its economic impact, with the sector valued at ₹2 lakh crore, generating ₹31,000 crore in revenue and contributing over ₹20,000 crore in taxes. Rapid growth has been evident, with India’s gaming population expanding from 36 crore in 2020 to more than 50 crore in 2024, and foreign investments surpassing ₹25,000 crore by mid-2022.
Next Steps for Implementation
If approved by Parliament, this legislation will create India’s first national standard for online gaming, focusing on eliminating harmful real-money operations while supporting safer and regulated gaming activities such as eSports. The proposed regulatory authority will provide clear oversight, ensuring better compliance and clarity for both businesses and players moving forward.
Sources: India Moves to Ban Online Money Games Under New 2025 Bill, World Casino Directory, August 20, 2025.