Online Gaming Bill: Lok Sabha passes legislation to ban online money games

The Bill was passed by a voice vote after brief remarks by Minister of Electronics and Information Technology Ashwini Vaishnaw, amid protests from Opposition lawmakers

The Lok Sabha on Wednesday passed the Promotion and Regulation of Online Gaming Bill, 2025, aimed at prohibiting all forms of online real-money games.

 

The Bill was passed by a voice vote after brief remarks by Minister of Electronics and Information Technology Ashwini Vaishnaw, amid protests from Opposition members. Following its passage, the House was adjourned for the day. 

 

What does the Bill ban?

 

The legislation defines an ‘online money game’ as any game in which an entry fee or monetary deposit is required, irrespective of whether it is based on skill or chance. The Bill prohibits any person or company from offering, aiding, or promoting such games. It also bars advertisements for these platforms and prevents banks and other financial institutions from processing related payments.

 

Criminal penalties

 

Once enacted, any individual or entity found offering or facilitating online money gaming could face imprisonment of up to three years, a fine of up to ₹1 crore, or both. The legislation is part of a broader government effort to regulate digital gaming in India while attempting to safeguard users from financial and psychological risks associated with such platforms.

 

The Bill had earlier been cleared by the Union Cabinet and now awaits consideration in the Rajya Sabha. Lawmakers have highlighted the growing use of online gaming applications, some of which have been linked to financial scams and addictive behaviour, as justification for the legislation.

Indutry view

The bill, however, has received criticism from industry groups such as the All India Gaming Federation (AIGF), Federation of Indian Fantasy Sports (FIFS), and E-Gaming Federation (EGF). They argue that it could force over 400 companies to shut, lead to the loss of around 200,000 jobs, and push players toward unregulated offshore platforms. They also noted that the sector contributes roughly ₹20,000 crore annually in GST and could play a key role in supporting India’s $1-trillion digital economy target if regulated rather than prohibited.