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In a sudden move, the Indian government has taken a significant step to control the online gaming industry. The government has introduced the 'Promotion and Regulation of Online Gaming Bill, 2025', which will impose a complete ban on all online gaming platforms that use real money for playing. Reportedly, the Cabinet has cleared the bill, and it is set to move to the Lok Sabha.
Reports indicate that if the bill passes the Lok Sabha, offenders could face up to three years in prison and up to Rs. 1 crore in fines, including social media influencers and streamers. About this sudden blow, the government cites rising addiction, financial ruin, and psychological harm, especially among children, as the primary motivations.
The Promotion and Regulation of Online Gaming Bill, 2025, by the Ministry of Electronics and Information Technology (MeitY), hasn’t yet been made public. However, according to Reuters, this 13-page bill defines online real money gaming as games where a user deposits money expecting monetary or other enrichment.
This bill includes renowned fantasy sports platforms like Dream11 and Mobile Premier League, as well as online gaming apps like Rummy or Pokerbaazi.
The proposed law prohibits gamers and social media influencers from promoting such games, labeling them as manipulative and addictive. The bill mentions that using algorithms, these games exploit users, especially minors to lead to financial ruin.
Offenders who violate the online gaming ban will face a 3-year imprisonment and Rs. 1 crore fines. Similarly, promoters will also face up to 2 years of imprisonment, along with u. 50. 50 lakh fine.
In the online gaming and gambling sector, money laundering is a common problem, and this bill, if passed in the Lok Sabha and implemented strictly, will reduce these issues. The main driving force of this industry is celebrity promotions and endorsements. The penalty will resolve the problem.
However, the real-money gaming market in India is massive. By 2029, it is projected to reach $3.6 billion, with Dream 11 currently standing at around $8 billion valuation, and Mobile Premier League stands at $2.5 billion.
Also Read: Retrospective Taxes: Hindering the Growth of Online Gaming Sector
The bill is proposed mainly to save kids. These games are available on mobile devices; therefore, preventing minors from accessing them is tough without a strict policy. Kids’ exposure to real-money gaming has raised serious concerns. Government studies have highlighted that these have been boosting anxiety, depression, sleep disorders, and other behavioral issues among children.
Furthermore, the engaging designs of these platforms, along with the promise of monetary gain, trigger compulsive use that leads to financial and psychological harm.
If the bill passes in the Lok Sabha, it will be a significant hit for India's growing real-money gaming industry, which attracts billions from foreign investors. Moreover, it creates thousands of jobs across the country for more than 400 startups.
However, the Indian government has hinted that this bill won't affect e-sports or game development in the country, distinguishing them from real-money betting platforms. If the ban holds, the gaming industry of India will undergo a drastic transformation toward skill-based, non-money games. Therefore, this proposed bill will reshape the gaming industry after years.
