The Union Cabinet has approved the Promotion and Regulation of Online Gaming Bill, 2025, which proposes a blanket ban on real-money online games—covering fantasy sports, digital rummy, poker, and similar games—even when skill-based. The bill aims to stem addiction, financial losses, and misuse of gaming platforms
Bill Highlights & Legislative Push
- The draft legislation explicitly prohibits offering or promoting games where money is wagered for potential gain, with violators subject to penalties including up to 3 years in jail and fines up to ₹1 crore.
- Banks and financial institutions would be barred from processing transactions for such games, while advertising them would also be criminalized.
- Simultaneously, the bill promotes e-sports, establishing a National e-Sports Authority to oversee and support competitive, non-monetary gaming.
Industry Alarm as Job & Tax Risks Grow
Gaming industry bodies—including AIGF, EGF, and FIFS—warn that the ban could be a “death knell” to a vibrant sector, currently valued at over ₹2 lakh crore. The industry employs more than 200,000 people, contributes ₹20,000 crore annually in taxes, and has attracted ₹25,000 crore in FDI.
Minister Priyank Kharge added that banning real-money gaming risks eroding state revenue, investor confidence, and jobs, noting that revenue from these games contributes significantly to GST, advertising, and cybersecurity investments.
Key Highlights at a Glance
| Aspect | Details |
|---|---|
| Legislation | Promotion and Regulation of Online Gaming Bill, 2025 |
| Real-Money Ban | Covers games of chance and skill-based money games |
| Penalties | Up to 3 years imprisonment; fines up to ₹1 crore |
| Transaction Ban | Banks barred from processing real-money game payments |
| Regulation | Creation of a National e-Sports Authority |
| Industry Concerns | 200,000+ jobs at risk, ₹20,000 crore in tax revenue threatened, risk of users shifting to unsafe offshore platforms |
Final Thoughts
India’s proposed ban on real-money online gaming marks a pivotal regulatory shift—aiming to safeguard against addiction and financial harm. While well-intentioned, it raises serious concerns for an industry that has become integral to India’s digital economy. Balancing consumer protection with innovation will be key as the bill heads to Parliament for consideration.
