Athira Sethu
Kochi, 20 August 2025
The Indian government will introduce the Promotion and Regulation of Online Gaming Bill, 2025, in Parliament today. The bill, tabled by Minister Ashwini Vaishnaw, seeks to regulate online gaming, e-sports, and educational games, but impose a blanket ban on online money games (RMG) with monetary stakes.
The new legislation aims to establish a central regulatory body that will guarantee the compliance of gambling sites and boost innovation in the industry. The body will require an initial outlay of ₹50 crore, with annual costs of ₹20 crore to be funded from the national budget of India.
One of the major aspects of the bill is the recognition of e-sports as a sport at the government level. The government intends to foster the development of e-sports by supporting training academies, research institutions, and technology platforms. It also intends to promote social games and educational games in order to provide content that is safe and accessible for all audiences.
The bill is strict against online money games. If enacted, it would be prohibited to advertise or promote such games in any manner, whether on television, online platforms, or through celebrity endorsements. The bill suggests strict punishments for offenders, including imprisonment of up to two years, a fine of up to ₹50 lakh, or both. Offenders for the second time may also be given stricter punishment, with imprisonment for up to three years and fines of up to ₹1 crore.
The bill also prohibits financial institutions from conducting transactions on behalf of online money gaming services and disallows all forms of advertisements for the games. The offenders will be severely punished under the law, with some offences being considered cognizable and non-bailable.
The government sanctions this prohibition on the grounds that it wants to guard against fraud, money laundering, tax evasion, and even funding of terrorism linked to offshore-based gaming sites. These sites are also deemed to possess manipulative elements that promote gambling addiction and compulsive behavior, especially for vulnerable sectors such as youth and low-income individuals. The bill also grants authorities access to investigate, search, and seize assets pertaining to illegal online gaming activities without a warrant.
If the bill is approved, it will represent a major shift in India’s online policy. It would place India as a front-runner in regulated online gambling and close down illegal, money-spinning games. The bill is up for debate in both the Lok Sabha and Rajya Sabha and will, if passed, transform the nation’s strategy towards online gaming.
