ArdorComm Media News Network
August 21, 2025
Union IT Minister Ashwini Vaishnaw on Wednesday introduced The Promotion and Regulation of Online Gaming Bill, 2025 in the Lok Sabha, even as opposition members voiced protests. The Bill, cleared by the Union Cabinet a day earlier, proposes a complete ban on online games involving monetary stakes, citing growing concerns of addiction, financial distress, and suicides among youth.
Soon after the Bill was tabled, proceedings were adjourned until 2 PM.
MeitY clarifies intent
Explaining the move, IT Secretary S. Krishnan said the Bill addresses two key issues — recognising the scope of the online gaming industry while also curbing harmful real-money games. He emphasised that this is a “societal decision,” noting that the government had weighed concerns of job losses but prioritised public well-being.
He added that a regulatory authority will be established to classify permissible and banned games. eSports and social games, including subscription-based formats without monetary rewards, will remain legal.
What the Bill proposes
Under the draft law:
- Offering online money games could attract up to three years in jail or fines up to ₹1 crore.
- Advertising such services could lead to two years in jail or fines up to ₹50 lakh.
- Banks and financial institutions enabling transactions for money games may also face penalties.
- Repeat offenders risk harsher sentences — three to five years in jail and higher fines.
Importantly, the Bill does not criminalise players, treating them as victims rather than offenders.
The legislation defines an “online money game” as any game where players pay fees, deposit money, or stake assets with the expectation of monetary returns — irrespective of whether it is skill-based or chance-based. It aims to curb gambling risks, financial exploitation, money laundering, and mental health crises while fostering a safe space for eSports and game development in India.
Industry backlash
Industry groups, including the All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and the Federation of India Fantasy Sports (FIFS), have warned of severe fallout. In a letter to Home Minister Amit Shah, they claimed the blanket ban could wipe out over 2 lakh jobs, force the shutdown of more than 400 companies, and push users toward unregulated and illegal platforms.
They highlighted that online skill gaming has become a ₹2 lakh crore industry, generating ₹31,000 crore in revenue and contributing ₹20,000 crore in taxes annually. The sector, growing at 20% CAGR, was projected to double by 2028, with India’s gamer base already exceeding 50 crore players by 2024.
Industry voices fear that the ban could derail India’s progress as a digital innovator, discourage foreign investment, and trigger large-scale unemployment.
Public health perspective
Supporters of the Bill, however, argue it is a much-needed safeguard. “This is more than regulation — it is protection,” said Preetha Reddy, Vice Chairperson of Apollo Hospitals. “Online money games have exposed children and youth to exploitation and mental health risks. This step puts wellbeing first.”
Source: Economic Times