Lok Sabha clears Bill to ban real-money gaming: Countdown begins

Cleared by the Union Cabinet on Tuesday, the Bill was introduced in the Lok Sabha earlier in day. Senior officials described it as a balanced measure, defending the government's decision to outlaw RMG

The Lok Sabha on Wednesday passed the Promotion and Regulation of Online Gaming Bill, 2025, which bans all forms of real-money gaming (RMG) and their advertisements in India. The Bill proposes jail terms of up to three years and fines of up to ₹1 crore for anyone offering RMG in the country and prohibits banks from working with companies providing such services.

 

Cleared by the Union Cabinet on Tuesday, the Bill was introduced in the Lok Sabha earlier in the day. Senior officials described it as a balanced measure, defending the government’s decision to outlaw RMG.

 

Union Electronics and Information Technology (IT) Minister Ashwini Vaishnaw said the Bill seeks to encourage e-sports and social games while curbing real-money games to address rising addiction, especially among children and youth.

 

“If there is a choice between addressing a problem that affects society at large and supporting an industry, the government will always address the larger societal issue. These games have caused heavy financial losses and instances of fraud. It was imperative for the government to act in the greater interest of society,” Vaishnaw said after the Bill’s passage.

 

The Bill, passed by the Lower House of Parliament, proposes that anyone who engages in or authorises funding for RMG will face up to three years’ imprisonment, a fine of up to ₹1 crore, or both. Repeat offenders may face up to five years in jail and a fine of ₹2 crore.

 

Beyond the ban, the Bill proposes setting up an authority to promote e-sports and social games by issuing guidelines and standards. It also calls for training academies, research centres, and institutions “dedicated to the advancement of e-sports”.

 

“E-sports will get legal recognition through this Bill. This will help players and organisations competing globally to receive government-backed recognition,” Vaishnaw added.

 

Concerns raised by industry associations over potential job losses, estimated at 200,000, are “inflated” and will need independent verification, a senior IT ministry official said.

 

“It’s not as if companies hired all these people solely to make real-money games. Of the three segments — e-sports, social gaming, and RMG — only the last has been banned. The Bill also supports the growth of the other two with budgets, authorities, and government backing as and when needed,” the official said, adding that the move brings much-needed clarity for the industry.

 

Another official said the government’s support for e-sports could open new opportunities for software engineers and gaming firms.

 

On Tuesday, after the Cabinet cleared the Bill, three gaming associations — the All India Gaming Federation, the E-Gaming Federation, and the Federation of Indian Fantasy Sports — wrote to Home Minister Amit Shah, warning that “a blanket prohibition would strike a death knell for this legitimate, job-creating industry and cause serious harm to Indian users”.

 

The letter also argued that the domestic gaming sector, which generates ₹31,000 crore annually and pays nearly ₹20,000 crore in taxes, would lose appeal for global investors.

 

But IT ministry officials said all ministries agreed on the measure, and that the potential revenue loss was outweighed by societal concerns.

 

“Around 450 million gamers lose money annually in online RMG. Nearly ₹20,000 crore is lost due to skewed algorithms, misleading advertisements, or fraud,” one official said.