Govt likely to tighten rules for money-based games in Online Gaming Bill

The draft Bill is likely to impose severe restrictions on online money games or online money gaming service offerings, including bank transactions

The government may introduce severe curbs on online money-based games in the forthcoming Online Gaming Bill, 2025, a CNBC-TV18 news report said on Tuesday.

 

The draft Bill was reported to impose restrictions on online money games or online money gaming service offerings, a move that could impact multiple firms in the country.

 

It is also expected to classify an “online money game” as any game — irrespective of skill- or chance-based — that involves players paying a fee or depositing money to participate. 

The Promotion and Regulation of Online Gaming Bill 2025 states that no person "shall offer, aid, abet, induce or otherwise indulge or engage in" the offering of online real money games, according to a Reuters report.

 

Who will be affected?

 

Companies like Dream11, My11Circle, Khelo Fantasy Live, SG11 Fantasy, WinZO, Games24X7 and Junglee Games are likely to be impacted by the bill.

 

The bill may also prohibit advertisements for such games and block financial transactions linked to them. Banks and financial institutions may also be barred from processing payments to online money gaming platforms, a move that could severely curtail their operations.

 

Heavy fines in the works

 

The draft Bill is said to also recommend strict penalties for violations. Hosting online money games could result in imprisonment of up to three years and fines up to ₹1 crore, while promoting such games may lead to two years in jail along with fines of up to ₹50 lakh, according to the CNBC-TV18 report.

 

Higher GST bracket and offshore move

 

Meanwhile, real money gaming (RMG) companies - currently in the 28 per cent goods and services tax (GST) bracket - are bracing for the impact of a steep 40 per cent rate, as the Centre considers bringing all 'sin goods' under the higher levy. Several players in the industry said that they would be either forced to move their business offshore or shut down, an earlier Business Standard report noted. “The exact impact can only be assessed after some preliminary discussions internally,” a top executive with a gaming company told Business Standard. Other executives added that smaller gaming companies may have to shut operations if a higher tax burden is imposed.

 

Tamil Nadu's ban on real money games

 

In 2022, Tamil Nadu passed the Prohibition of Online Gambling and Regulation of Online Games Act, which banned online games of chance such as rummy and poker. The law set penalties for operators, advertisers, and players involved in these games. By 2023, several gaming platforms had blocked users in Tamil Nadu from participating in real-money contests in compliance with the law.

 

In 2025, the state notified the Tamil Nadu Online Gaming Authority (Real Money Games) Regulations. These rules required Aadhaar-based KYC verification, prohibited participation by minors, set spending limits, and restricted logins between 12 a.m. and 5 a.m. In June 2025, the Madras High Court upheld these regulations.

 

Self-imposed code of ethics

 

In March 2025, industry bodies representing online RMG companies — the All India Gaming Federation (AIGF), the Federation of Indian Fantasy Sports (FIFS), and the E-Gaming Federation (EGF) — jointly announced the adoption of a “code of ethics", according to a report in The Hindu newspaper. According to a March 10 statement, member companies had vowed to implement measures such as KYC verification, spending limits, and other practices aimed at ensuring user safety and promoting responsible gaming.