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The Online Gaming Bill 2025 bans all real-money games, including gambling, rummy, fantasy sports.
Strict penalties include fines up to Rs. 2 crores, imprisonment, and warrantless arrests for repeat offenders.
The Bill promotes e-sports, social, and educational games while establishing a national Online Gaming Authority.
On August 20, 2025, the Lok Sabha passed the Promotion and Regulation of Online Gaming Bill 2025, which the Rajya Sabha later approved on August 21, 2025.
The legislation serves a dual purpose:
Promoting safe, skill-based topics such as e-sports or educational games.
Ban real money-based online gaming, such as betting, to reduce the risks of online fraud and money laundering.
Prime Minister Narendra Modi stated that the bill will promote digital innovation and establish India as a global competitor in the gaming industry.
Under the IT Act, 2000, the Bill prohibits advertising or promoting banned games and restricts financial transactions and payment systems on such platforms.
The Bill forces a complete real money games ban (RMGs), including:
Gambling
Fantasy Sports, like Rummy, were formerly exempted, but are currently prohibited regardless of the skills needed.
Popular games like Dream11, Mobile Premier League, Zupee, Games24X7, and poker will face shutdown once the President signs the bill into law - an imminent formality.
The Bill has introduced rigid penalty systems, namely:
Offenses are cognizable, and their non-bailable nature is the main feature. Anyone can be arrested without a warrant, and bail is not a matter of right.
Searches and seizures conducted by any authority may be made without a warrant and can include the seizure of digital and physical assets involved in committing the offense.
Platform directors may be held liable, but independent or non-executive directors may be exempt if not involved.
Also Read: Nazara Technologies Shares Tumble 23% in Two Days as Online Gaming Bill Spooks Investors
Although money-based games have been prohibited, the Bill further fosters positive gaming law:
Officially recognized as competitive sports.
The Ministry of Youth Affairs and Sports will issue guidelines and promote tournaments and training academies, while further establishing research centers, awareness campaigns, and integrated policies.
The central government can recognize and register casual games that are safe and age-appropriate, assisting in the development of education, culture, or skill-building.
A national-level Online Gaming Authority shall be set up, or an existing body repurposed, to:
Register platforms.
Classify games as permitted or prohibited.
Handle grievances; and
Issue compliance guidelines.
The gaming industry is set to be disrupted, with forecasts indicating it will reach $3.6–$9 billion by 2029.
These are vulnerable property startups, Dream11 being an $8 billion firm and Mobile Premier League at $2.5 billion.
Share price impact: Nazara Tech's shares declined 11%, while Delta Corp declined 2–3%.
The industry is growing apprehensive about job losses and the withdrawal of infrastructural funds that may take flight toward unregulated offshore platforms.
Rohit N Jagasia, Founder & CEO, Revenant Esports, says, “With the passing of the Promotion and Regulation of Online Gaming Bill, 2025, the gaming industry stands at a true inflection point. This bill was the need of the hour and is a welcome step toward providing long-awaited clarity. For the first time, the law formally recognises esports as a competitive sport, while also ensuring much-needed uniformity in regulations across states.”
He continues, “Until now, the absence of a national framework had led to fragmented state-level laws and confusion. With a clear framework now in place, we can expect it to fuel healthy competition, spur innovation, and attract investments that will strengthen and accelerate the growth of the entire gaming ecosystem.”
Also Read: India Passes Online Gaming Bill 2025: Are Dream11 and MPL in Trouble?
The government contends that money-based online games present a high level of danger for potential addicts of any kind, and so they are considered quite dangerous by players of all ages. Many platforms have been linked to fraud, identity theft, and money laundering by tricking players into entering unsafe financial ecosystems.
Individuals would lose enormous amounts of money in just a day and would find many instances of debt, family disputes, and mental health stress, such as anxiety, fear, and depression.
Young people are technically the most vulnerable, as flashy ads and instant gratification methods promote reckless spending. With few regulations in place, sites like these offer little to no support when fraud occurs.
The bill ensures a total ban, intending to protect citizens from exploitation and safeguard their financial and emotional welfare.
Q1. What does the Online Gaming Bill 2025 ban?
The Bill imposes a blanket ban on all money-based online games, including gambling, rummy, poker, and fantasy sports like Dream11 and MPL. It prohibits advertisements, promotions, and financial transactions linked to these platforms, ensuring strict oversight to prevent fraud, addiction, and money laundering risks across the gaming ecosystem.
Q2. What penalties can violators face under the Bill?
Violators face severe penalties, including imprisonment of up to five years and fines up to Rs. 2 crores for repeat offenses. Misleading advertisements, unauthorized transactions, and operating real money games (RMGs) are punishable with jail time. Offenses are cognizable and non-bailable, allowing arrests and asset seizures without warrants.
Q3. Does the Bill support any type of online gaming?
Yes. The Bill encourages safe, regulated forms of gaming such as e-sports and educational games. The Ministry of Youth Affairs and Sports will promote e-sports tournaments, training academies, and awareness campaigns. Casual games that promote education, culture, or skill-building may also be recognized and registered under the new framework.
Q4. How will the Online Gaming Authority regulate the industry?
The proposed national-level Online Gaming Authority will register gaming platforms, classify games as permitted or prohibited, handle grievances, and enforce compliance guidelines. It will act as the key regulator, ensuring that digital gaming in India develops responsibly, balancing innovation with player safety and strict safeguards against money-driven exploitation.
Q5. Why are money-based online games considered dangerous?
Money-driven online games often foster addiction and reckless spending, causing massive financial losses in short periods. Fraud, identity theft, and money laundering are common risks. Many young players fall prey to manipulative advertisements and instant-reward systems, leading to debt, family disputes, and mental health challenges like anxiety and depression.
