The Indian government has introduced the Promotion and Regulation of Online Gaming Bill 2025 in the Lok Sabha after cabinet approval. The legislation represents a balanced move to encourage innovation and youth engagement through safe online gaming.

Union Minister Ashwini Vaishnaw described the bill as the outcome of over three years of communication with industry stakeholders. He explained that the aim is to encourage game development and e-sports, while restricting exploitative practices that endanger young people and their families. 

Focus on E-Sports and Game Development

The bill draws a clear distinction between e-sports and online money games such as betting, fantasy sports, poker, and rummy. The government is working closely with the Sports Ministry to support e-sports by setting guidelines, establishing training academies, and creating research and incentive programmes.

A major element of the legislation is the establishment of the Indian Institute of Creative Technologies (IICT), with gaming identified as a core vertical. The government hopes this will turn India into a global hub for game creation and enable young developers to build lasting careers. The Information and Broadcasting Ministry and the IT Ministry will also support social games promoting cultural awareness, education, and skill development.

Total Ban on Online Money Gaming

The bill defines online money games as any activity where users pay a fee, deposit money, or stake funds in the expectation of monetary rewards. All such games are to be prohibited regardless of whether they are based on chance or skill. This proposed law bans advertising, promotion, and financial transactions linked to these platforms. 

Furthermore, banks and payment service providers will be legally prevented from processing transfers. Offenders and advertisers face serious consequences, with prison terms of up to three years and fines reaching Rs 1 crore for operators. Enforcement officers will have powers to investigate, seize property, and make arrests without warrants. 

National Authority for Regulation

To provide regulatory clarity, the legislation proposes a national authority for online gaming. This body will categorise games, register platforms, and determine whether a game qualifies as a money game after due inquiry. It will also handle complaints and ensure strict compliance.

By combining a total ban on real-money gaming with active promotion of safe digital entertainment, the government aims to protect mental health and reduce risks of fraud and financial distress. At the same time, the bill sets the stage for India to emerge as a leading hub for e-sports and creative gaming.