Online Gaming Bill 2025 Passed: What is it and how it affects you?

India bans all real-money online games & their ads. E-sports & skill-based games get promoted. New regulator formed. Players protected from addiction, industry faces major upheaval with jail for offenders.

New Delhi: Union Electronics and IT Minister Ashwini Vaishnaw has introduced the 'Promotion and Regulation of Online Gaming Bill, 2025' in the Lok Sabha. The main objective of this bill is to bring clarity in the field of online gaming and to differentiate between two types of gaming.

On the one hand, e-sports (competitive skill-based sports) and social/educational gaming will be encouraged, while on the other hand, "money gaming" (games involving bets on money or valuables) will be completely banned.

What's Banned?

• The entire ecosystem of real-money online gaming.
• Games of Skill: Poker, Rummy, Fantasy Sports.
• Games of Chance: Online casinos, slots, virtual lotteries.

What Else is Illegal?

• Advertising: Any promo for a real-money game.
• Financial Support: Banks and payment gateways cannot process transactions.
• Hosting: Providing server space or platforms for these games.

The biggest feature of this bill is the formation of a new Regulatory Authority. The job of this institution will be to formulate policies for online gaming, promote e-sports and ensure compliance with the rules. It will also have the right to ban the operation, advertising or promotion of money gaming.

The bill also includes some strict provisions. Banks and payment apps will be prohibited from making transactions related to money gaming and all types of advertisements of such games will be completely banned. Its purpose is to protect the youth from the ill effects of gambling and betting, as according to the government, gaming addiction among minors has increased to dangerous levels.

The Enforcement & Penalty Structure

• Offering/Operating a Money Gaming Platform
• Jail Term: Up to 3 Years
• Financial Penalty: Up to ₹1 Crore
• Cognizable & Non-Bailable

Advertising or Promoting a Money Game

• Jail Term: Up to 2 Years
• Financial Penalty: Up to ₹50 Lakhs
• Level 3: Repeat Offenders
• Jail Term: 3 to 5 Years
• Financial Penalty: Up to ₹2 Crore

There are many reasons behind this move of the government. Already 28% GST is applicable on online gaming and 30% tax is levied on winnings. Also, illegal betting is considered a serious offense under the Indian Justice Code (BNS), which carries a provision of up to 7 years in prison and heavy fines.

How the New Gaming Bill Affects You

For the Player/Gamer:

• No more real-money gaming apps.
• Focus shifts to competitive E-Sports and skill-based recreational games.
• Stronger consumer protection from predatory practices.

For the Industry

• Investor Shock: Multi-billion dollar Fantasy Sports and Rummy industry faces an existential threat.
• Job Losses: Potential significant layoffs in gaming tech, marketing, and customer support sectors.
• New Opportunities: Growth potential in E-Sports management, game development for non-monetary games, and organizing tournaments.

In the last few years, the government has also blocked more than 1,400 such illegal websites and apps. In short, this bill is a big step towards providing an organized and regulated framework to online gaming, which will put a strict stop on illegal money gaming while promoting legal gaming.