The Lok Sabha on Wednesday approved the Promotion and Regulation of Online Gaming Bill, 2025, moving the nation a step closer to a sweeping ban on online real-money gaming.
Union minister Ashwini Vaishnaw tabled the Bill after it was cleared by the Union Cabinet on Wednesday. It will next have to clear the Rajya Sabha before the President can sign it into law.
The proposed law encourages e-sports and social games, while prohibiting real money gaming and online betting that could lead to financial loss.
What is the main aim of Bill?
The proposed law encourages e-sports and social games, while prohibiting real money gaming and online betting that could lead to financial loss. It aims to establish a uniform, national-level legal framework in the public interest.
It also has the provision for the appointment of an Online Gaming Authority for coordinated policy support, strategic development and regulatory oversight of the sector.
What does the Online Gaming Bill propose?
• The draft bill prohibits the offering of online money gaming services, advertisement of such gaming services and puts a bar on bank, financial institutions' transactions with such platforms.
•Esports will be recognised as a legitimate form of competitive sport in India. The Union Ministry of Sports will frame guidelines and standards for conduct of esports events in India, as well as establishment of training academies, research centres and technology platforms.
•It will allow the government to “recognise, categorise, and register” online social games. The central government will oversee gaming, categorise games, determine money games, handle complaints, and issue guidelines.
What are penalties?
The bill has proposed penalties and made offences non-bailable.
•Advertising such games will attract a penalty of Rs 50 lakh or up to two years of imprisonment.
•Section 9 of the proposed legislation stipulates imprisonment of up to three years and a fine. It can extend to Rs 1 crore for those found offering, aiding, abetting, inducing, indulging in online money gaming services.
•The bill also proposes imprisonment of up to two years or fine extending up to Rs 50 lakh for those who advertise, promote or sponsor online money game or online money gaming services.
•Additionally, financial intermediaries or others who facilitate payments for such games will face the same penalty as the operators.
•A repeat offence would attract enhanced penalties, including jail for 3-5 years and a fine of up to Rs 2 crore.
What does the Opposition say?
The Opposition has criticised the bill for being rushed, lacking stakeholder consultation, and potentially undermining regulation.
Congress MP Karti Chidambaram said on X, "The proposed online gaming bill, The Promotion and Regulation of Online Gaming Bill, 2025 is being introduced without industry consultation, is a knee-jerk reaction that could prove counterproductive... The government should refer the bill to a select committee and hold public hearings to ensure a balanced and informed approach."
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