Real Money Out, Esports In In light of instances of gambling addiction, money laundering, and financial fraud, the Indian Parliament has approved the online gaming bill to prohibit games played with real money online.
The move has an effect on India’s $3.8 billion gaming industry, which has attracted investors from around the world and supported fantasy sports apps like Mobile Premier League, Games24X7, and Dream11. In addition, Nazara Technologies Ltd., India’s only publicly traded gaming company, is considering selling its stake in PokerBaazi, an online betting app.
On Wednesday, the Promotion and Regulation of Online Gaming Bill, 2025, was approved by the Lok Sabha. On Thursday, the Rajya Sabha gave its approval. The President must now sign the bill for it to become law, effectively banning online gaming apps that require users to pay money to win cash. A government statement to the media reads.
The government believes that the harms of addiction, financial loss, and even extreme consequences such as suicides associated with online money gaming can be prevented by prevention of such activities.
Additionally, online money gaming platforms are often misused for financial fraud, money laundering, terror financing and messaging activity that compromise national security,” it added.
In light of this, the following is an explanation of the Online Gaming Bill in five points:
- Esports recognition and promotion
Esports will be recognized as a legitimate form of competitive sport in India under the Online Gaming Bill. The Union Ministry of Sports will establish training academies, research centers, and technology platforms in addition to establishing guidelines and standards for the organization of esports competitions in India. The bill also provides for incentive schemes, awareness campaigns and integration of esports into broader sports policy.
- promotion of educational and social games
The Online Gaming Bill allows the government to “recognise, categorise, and register” online social games. This will be caused by creating platforms for the creation and distribution of social and educational games that are secure and appropriate for all ages. Indian-themed cultural and educational games will receive special attention.
- prohibiting harmful online gambling
Online money games, regardless of whether they are based on skill, chance, or a combination of the two, are proposed to be completely outlawed under the Online Gaming Bill. On any medium, these games cannot be promoted or advertised. Banks and payment systems are barred from processing payments.
The online money games, which are currently operational in the country, will be blocked under the Information Technology Act, 2000.
- establishing a gaming authority online
A national online gaming authority is proposed for oversight in the bill. Its functions would include:
- Online game registration and categorization.
- Determination of whether a game qualifies as a money game.
- Handling complaints and grievances related to online games.
Guidelines, orders, and codes of conduct will be issued by this body to guarantee compliance with the law.
- Penalties and Infractions
- Entities involved in or facilitating online money gaming face up to three years in prison and/or a fine of up to one crore rupees.
- Advertising such games could result in a fine of up to 50 lakh or up to two years in prison.
- There will be a maximum sentence of three years in prison and a maximum fine of one crore rupees for any financial transaction connected to money games.
- A reoccurring offense would result in harsher penalties, including 3-5 years in prison and a fine of up to 2 crore rupees.
Indian lawmakers feel an outright ban on online money gaming would be more effective than regulation, considering the financial ruin caused to many households through “manipulative design features and addictive algorithms”, according to the media statement.
Several online platforms were found to have links to “financial fraud, money laundering, tax evasion and terror funding”. Also, with many of the operators based offshore, it becomes difficult to enforce state rules and taxes, the lawmakers said.