The Lok Sabha has cleared the Promotion and Regulation of Online Gaming Bill, 2025, a move that effectively bans online money games such as fantasy sports and real-money card platforms. The Bill was passed on August 20, 2025, by a voice vote and has been presented as a necessary step to safeguard citizens from the financial and social harms associated with such games.
What the Bill Seeks to Do
The legislation prohibits the offering, facilitation, advertising, and participation in online money-based games, where users deposit funds in the hope of financial returns. In addition, the Bill outlines the formation of a regulatory authoritytasked with promoting e-sports, which the government views as a legitimate avenue for recreation and economic growth.
The introduction of the Bill stressed the urgency of action, citing the “serious social, financial, psychological, and public health harms” arising from the rapid spread of money-based gaming on mobile and digital platforms.
Political Consensus and Rationale
Union IT Minister Ashwini Vaishnaw, who tabled the Bill, highlighted broad cross-party agreement on the issue. Speaker Om Birla urged MPs to rally behind the measure, framing it as legislation in the national interest, given reports of addiction, financial ruin, and rising cases of suicide linked to online money gaming platforms.
Mr. Vaishnaw noted that “lifetime savings evaporate in these games” and warned of fraud risks due to opaque algorithms. The government’s stance is that prohibition was necessary after years of industry engagement failed to curb the negative consequences.
No Draft Consultation, Strong Pushback Expected
Unlike many regulatory proposals, this Bill was not circulated in draft form for public consultation. Officials defended this choice, arguing that prohibition laws are not typically subjected to consultation. IT Secretary S. Krishnan remarked that industry players had long sought clarity — and this legislation now provides a definitive framework.
However, legal experts caution that the measure could face a constitutional challenge. According to Vidushpat Singhania, managing partner at Krida Legal, the Bill could be contested on grounds of trade restrictions and legislative competence, noting that the industry had lobbied for central regulation rather than a ban.
Government lawyers, meanwhile, expressed confidence that the Bill’s provisions would stand up to judicial scrutiny.
Industry at a Crossroads
The decision marks a critical turning point for India’s online gaming ecosystem. While e-sports promotion receives state backing, real-money gaming firms may face existential challenges. Many industry voices are expected to mount opposition, citing both the loss of investment and the potential stifling of innovation in one of India’s fastest-growing digital sectors.
What is clear is that India has taken a decisive political stance: separating skill-based e-sports from money-based gaming and prioritizing public health over commercial expansion. The outcome of any legal challenges in the months ahead will determine whether this law reshapes the country’s gaming landscape permanently or opens the door to further revisions.
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