The Narendra Modi-led central government is preparing to take a decisive step against online real money gaming. A new bill called the “Online Gaming Promotion and Regulation Bill 2025” is expected to be introduced in the Lok Sabha today. If passed, the law could impose a blanket ban on all online games played for money, causing a stir in India’s booming gaming industry.
Why ban online money games?
The Ministry of Electronics and Information Technology (MeitY), which drafted the bill, has cited psychological harm, financial risks and money laundering concerns as the main reasons behind the move.
According to the bill, no person or company will be allowed to “offer, aid, abet, induce or otherwise engage” in the promotion or conduct of online games involving money.
The government argues that the addictive nature of such platforms, as well as manipulative algorithms and celebrity endorsements, is leading to rising cases of depression, anxiety, sleep disorders and financial ruin, especially among young users.
Strict Penalties for Violations
The proposed law comes with harsh penalties:
- Up to 3 years in jail and ₹1 crore fine for offering or operating online real-money games.
- Up to 2 years in jail and ₹50 lakh fine for those promoting such platforms, including social media influencers and celebrities.
This sweeping action could deliver a heavy blow to gaming operators, investors, and digital marketers who rely on these platforms.
Size of India’s online gaming industry
India’s online gaming sector has grown rapidly in the past few years, with reports estimating the market to be worth $3.6 billion by 2029. Powered by foreign investments, celebrity endorsements and aggressive marketing campaigns, real money gaming apps have gained immense popularity.
However, government officials insist that the negative impacts outweigh the benefits. “The immersive and addictive nature of online games, especially those with financial incentives, has led to serious mental health problems,” the bill asserts.
Industry response: ‘Death knell’ for jobs and investments
Gaming industry associations have strongly objected and warned that the ban could lead to a massive loss of jobs, foreign capital and innovation opportunities in India. In a letter to the Union Home Ministry, the gaming bodies have called the move a “death knell for a legitimate industry” that currently employs thousands of workers in the technology, design and marketing sectors.
Government stance on e-sports and game development
Interestingly, the government has clarified that it considers e-sports, game development and competitive skill-based gaming to be important drivers of India’s digital economy. The proposed law will continue to support and promote non-monetary online gaming, while also cracking down on gambling-style apps.
What this means for the future of online gaming in India
If the Online Gaming Promotion and Regulation Bill 2025 is passed, India will witness the harshest crackdown on online real money games. With a jail term of up to 3 years and a fine of up to ₹1 crore, the law aims to protect citizens—especially the youth—from financial exploitation and mental health risks.
Also, the bill signals the government’s intention to draw a clear line between harmful gambling-like games and legitimate e-sports or gaming innovations.