5 things to know about India’s proposed law to ban online real money gaming

The bill is set to introduced in Rajya Sabha on August 21

The Promotion and Regulation of Online Gaming Bill, 2025, which proposes a ban on all  online money games, is set to be tabled in Rajya Sabha on August 21, following its passage in the Lok Sabha on August 20.

This marks the Union government's first attempt at creating a central law for online gaming.

For years, the issue was in a grey zone, with state governments bringing in their own laws and regulations, but enforcement was patchy.

The Centre is now arguing that the borderless nature of digital platforms demands uniform national rules.

The Bill’s preamble makes two points – firstly,  that online money games pose “grave social, economic, and psychological consequences” linked to suicides, debt traps, and even illicit financing and secondly, that e-sports and non-monetised social games should be promoted.

Also read: What Centre's new online gaming bill means for real-money gaming platforms

Here are the five takeaways:

1. Blanket ban on money games

The law takes a hard stance on real-money formats. The bill explicitly prohibits any individual or company from hosting or promoting games involving money. The penalties are stiff, up to three years of imprisonment or fines of Rs 1 crore.

Also read: Ashwini Vaishnaw: Online money gaming platforms misused for terror financing, laundering

2. Criminal liability extends beyond operators

It is not just that gaming companies who find themselves in the crosshairs of the government. The legislation also brings advertisers, sponsors, and payment intermediaries into its scope. The bill says that running ads or marketing money games can draw up to two years in prison or fines of Rs 50 lakh.

Also read: This is a balanced bill, provides clarity: MeitY Secretary Krishnan defends proposed ban on money-based games

Payment providers that enable deposits or withdrawals will face the same punishments as operators.

3. Clear space carved out for e-sports and social gaming

Through the bill, the Centre has brought in a clear demarcation between online money games and eSports and online social games. While the government will be banning money games, it intends to promote the other two types of games.

Also read: Gaming industry contributed 10% of revenue for several payment firms, impact on UPI volume and value minimal

IT minister Ashwini Vaishnaw said that the government will be bringing in schemes to support such games. The bill says that e-sports, competitive skill-based play, and casual social games encourage “innovation, skill development, and economic activity.”

4. Creation of a dedicated gaming regulator

The Bill sets up a new “Authority on Online Gaming” to be the sector’s nodal body. The authority's functions will include registering and certifying games, identifying whether a game involves money stakes, handling complaints and grievances related to online games, and giving directions to block platforms which are not compliant with the proposed law.

5. Extra-territorial reach

The Bill covers all gaming services “within India or outside India if such services are accessible in India.” This makes it clear that offshore operators will not be able to bypass the law simply by hosting servers abroad.