Online Gaming Bill 2025 Sparks Debate as Govt Aims to Curb Money Games, Industry Warns of Illegal Alternatives
According to the government, the Online Gaming Bill protects users from financial harm and fraudulent platforms. However, businesses worry that a complete prohibition may force customers to use illegal apps.
Aadrika Tayal 
New Delhi (India) August 20: The Promotion & Regulation of Online Gaming Bill, 2025, has been approved by the Union Cabinet. It paves the way for the most extensive crackdown on India's rapidly expanding online gaming industry.
Strict penalties for money-based games
If the bill is approved by Parliament, it will make it illegal to play any online game that requires money. It will be regardless of whether it is skill-based or random. It will also be illegal to advertise these platforms, and to prevent banks and other financial institutions from handling such transactions. The draft states that anyone who offers such games might be fined and imprisoned for up to three years.
Union Minister Ashwini Vaishnaw introduces the bill in the middle of protests from the opposition over Bihar's ongoing electoral record changes. The administration justifies the measure as an essential step to fight addiction, fraud, and financial exploitation associated with online money games.
The Bill clearly distinguishes between money-based gaming and other kinds, such as eSports and online social games, even though it aims to outlaw both. The ban does not apply to skill-based multiplayer video games, including those without monetary stakes. In order to promote a more strong online gaming environment, the government also states its intention to support and control these acceptable formats.
Warrantless search powers included
The Bill gives any central government-appointed official the right to enter and search "any place" without a warrant. It happens if there is a reasonable suspicion that someone is committing or planning to commit an Act-related offense. Buildings, automobiles, computer systems, virtual digital places, electronic data, and storage devices are all included in the broad definition of "any place". The Bharatiya Nagarik Suraksha Sanhita, 2023, is the source of these powers.
Heavy fines and prison terms proposed for money-based gaming
If offenses are committed with the consent, cooperation, or negligence of corporate directors, managers, and officers, they may be held personally liable under Section 11(3).
Violations carry severe fines and are not subject to bail. Offering or running online money games has a maximum sentence of three years in prison or a fine of Rs 1 crore. Promoting or funding them carries a maximum sentence of two years in prison or a fine of Rs 50 lakh. The same sanctions that apply to the platforms themselves also apply to financial intermediaries that participate in these services.
Industry seeks regulation, not ban
In a letter to Union Home Minister Amit Shah, the All India Gaming Federation (AIGF) urges immediate action on the proposed Online Gaming Bill. They caution that a complete ban might seriously harm the industry.
The federation highlights the possible consequences for millions of players and the industry as a whole in its communication. They also emphasize the necessity for "progressive regulation" as opposed to outright prohibition.
