MC EXCLUSIVE Draft bill targets platforms, not players, in online money gaming: Sources

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While the new draft online gaming bill imposes criminal restrictions on platforms offering online money games, the playing of such games will not be criminalised, a government official told Moneycontrol.

The Promotion and Regulation of Online Gaming Bill 2025 is slated to be introduced in the Lok Sabha on August 20 after it received the Union Cabinet nod on August 19.

"For long there has been an industry demand, on the lack of clarity in the gaming industry -- on how a few sleazy players have been taking advantage of the system," the official cited above said.

"One important thing here to note is that while the bill proposes restrictions on platforms offering such games, the government will not criminalise the playing of such games," they added.

According to a version of the bill reviewed by the publication, the bill "prohibits" person from offering, aiding, abeting, inducing online money games and online money gaming services.

If a person offers such games, then the person is liable to receive imprisonment upto 3 years or with fine that may extend Rs 1 crore.

Till now, regulation online money games such as gambling and so on, have been a State subject. However, with this, the Centre aims to establish a central regulatory structure for regulating such games.

"Because online gaming platforms operate across states, the government believes it should be regulated at the national level rather than left to individual states," said the official cited above.

Additionally, matters related to the online sphere, is also a Central subjected, the official added.

Earlier, the IT Rules had proposed the establishment of self regulatory bodies for the online gaming industry. "There was a sense that the SRO and the IT Rules would not have been enough," the official said.

Additionally, the new proposed bill largely aims to promote e-Sports and online social games.

The official said that the government has been promoting eGames through its initiatives such as WAVES, National Institute of Creativity, STPC's Centre of Excellence and so on.