Online Gaming Bill 2025
A new law, “The Promotion and Regulation of Online Gaming Bill, 2025,” has been passed by both houses of Parliament, aiming to crack down on harmful online money games while promoting esports and other forms of digital entertainment. The bill, which passed the Lok Sabha on Wednesday and the Rajya Sabha on Thursday, now awaits the President’s signature to become a law.
The legislation essentially bans online gaming apps where users have to pay money to win cash. This move is intended to curb the financial losses, addiction, and even suicides linked to such games. Lawmakers also cited concerns that these platforms are often misused for financial fraud, money laundering, terror financing, and activities that compromise national security.
Key Provisions of the Bill
The bill outlines five main points to regulate the online gaming industry:
1. Promotion and Recognition of Esports: The bill officially recognizes esports as a legitimate competitive sport in India. The Union Ministry of Sports will be responsible for creating guidelines for esports events and establishing training academies, research centers, and technology platforms.
2. Promotion of Social and Educational Games: The bill allows the government to recognize and register online social and educational games. These games will be developed on safe, age-appropriate platforms that align with Indian cultural values.
3. Prohibition of Harmful Online Money Games: A complete ban is proposed on the operation and advertising of online money games, regardless of whether they are based on skill or chance. Banks and payment systems are also barred from processing payments for these games. The bill states that existing online money games will be blocked under the Information Technology Act, 2000.
4. Establishment of an Online Gaming Authority: A new national authority will be created to oversee the online gaming sector. Its functions will include categorizing and registering games, determining which games qualify as “money games,” and handling complaints. This body will also issue guidelines and codes of practice.
5. Offences and Penalties: The bill includes strict penalties for violations. Entities involved in promoting or facilitating online money gaming could face up to three years of imprisonment and/or a fine of up to ₹1 crore. Advertising such games could result in a penalty of ₹50 lakh and up to two years in prison. Repeat offenders face enhanced penalties, including 3-5 years in jail and a fine of up to ₹2 crore.
This legislation is expected to have a significant impact on India’s estimated $3.8-billion gaming industry, particularly on companies like Dream11, Games24X7, and Mobile Premier League, which have led the fantasy sports sector.
Source: AAJTAK, Hindustan Times