Actual Cash Out, Esports In: Online Gaming Bill Clears Lok Sabha | 5 Key Factors

The move affects India’s $3.8 billion gaming industry, which has drawn global investors and fostered fantasy sports apps like Dream11, Games24X7 and Mobile Premier League.

The Promotion and Regulation of Online Gaming Bill, 2025, was tabled in the Lok Sabha on Wednesday evening. It essentially bans online gaming apps that require users to pay money to win cash.

“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,” according to a media statement released by the government.

“Additionally, online money gaming platforms are often misused for financial fraud, money laundering, terror financing and messaging activity that compromise national security,” it added.

Against that backdrop, here’s the Online Gaming Bill explained in five points:

1. Promotion and recognition of esports

Under the Online Gaming Bill, esports will be recognised as a legitimate form of competitive sport in India. The Union Ministry of Sports will frame guidelines and standards for conduct of esports events in India, as well as establishment of training academies, research centres and technology platforms. The bill also provides for incentive schemes, awareness campaigns and integration of esports into broader sports policy.

2. Promotion of social and educational games

The Online Gaming Bill allows the government to “recognise, categorise, and register” online social games. That will be brought on by building platforms for development and distribution of safe, age-appropriate social and educational games. A special emphasis will be laid on cultural and educational games aligned with Indian values.

3. Prohibition of harmful online money games

The Online Gaming Bill proposes a complete ban on offering, operating or facilitating online money games, irrespective of whether based on skill, chance, or both. These games cannot be advertised or promoted on any form of media. 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.

4. Establishment of an online gaming authority

The bill proposes to set up a national online gaming authority for oversight. Its functions would include:

• Categorisation and registration of online games
• Determination of whether a game qualifies as a money game.
• Handling complaints and grievances related to online games.

This body will be responsible for issuing guidelines, orders and codes of practice to ensure compliance with the laws of the land.

5. Offences & Penalties

• The bill proposes imprisonment up to three years and/or fine of up to ₹1 crore for entities involved in or facilitating online money gaming.
• Advertising such games will attract a penalty of ₹50 lakh or up to two years of imprisonment.
• Any financial transaction related to money games will result in imprisonment of up to three years and/or a fine of up to ₹1 crore.
• A repeat offence would attract enhanced penalties, including jail for 3-5 years and fine of up to ₹2 crore.

Indian lawmakers really feel an outright ban on on-line cash gaming could be simpler than regulation, contemplating the monetary break prompted to many households by “manipulative design features and addictive algorithms”, in line with the media assertion.

Several on-line platforms have been discovered to have hyperlinks to “financial fraud, money laundering, tax evasion and terror funding”. Also, with most of the operators based mostly offshore, it turns into troublesome to implement state guidelines and taxes, the lawmakers stated.