Lok Sabha Passes Bill to Ban Real-Money Online Games, Pushes for E-Sports

The Lok Sabha on Wednesday passed the Promotion and Regulation of Online Gaming Bill, 2025, aimed at imposing a nationwide ban on real-money online games while promoting e-sports and safe gaming practices.

Under the new legislation, all forms of online gaming involving monetary stakes—whether based on skill or chance—will be prohibited. The government cited concerns over rising cases of addiction, financial fraud, money laundering, and even suicides linked to heavy losses on such platforms.

The bill lays out strict penalties for violations. Operators offering or facilitating real-money games could face up to three years in prison and fines up to ₹1 crore, while advertisers may be punished with two years imprisonment and fines up to ₹50 lakh. Repeat offenders could face up to five years in jail and ₹2 crore in fines.

At the same time, the legislation distinguishes between betting-based games and e-sports, educational, and social gaming, extending official recognition and policy support to the latter. Provisions include creating a regulatory authority to classify games, register platforms, and oversee compliance.

While the government has hailed the bill as a measure to protect vulnerable users, the gaming industry has raised alarm. India’s real-money gaming market—valued at nearly $3.8 billion—accounts for the bulk of sector revenues. Analysts warn the ban could lead to widespread job losses, closure of startups, and reduced tax collections.

The bill now awaits consideration in the Rajya Sabha.