2025/08/22 16:06 pm
Yesterday marked a landmark move by the Parliament to shield citizens from the menace of online money games by stamping the Promotion and Regulation of Online Gaming Bill, 2025. This ‘blanket ban’ is nothing but a deathblow to India’s online gaming industry, putting 400 companies, 2 lakh Jobs, ₹ 25,000 crore in investment, and an annual GST revenue of ₹20,000 Crore at risk – leaving a question-Is it truly a dead end for the industry?
What’s the Online Gaming Bill 2025, passed by the Government?
“Designed to curb addiction, financial ruin, and social distress caused by predatory gaming platforms that thrive on misleading promises of quick wealth.”, the step has been characterized by the government as a resolution to safeguard families while directing the digital economy towards safe and constructive growth. (PIB)
Why was the Online Gaming bill passed?
The rapid absorption of digital technology in the gaming industry has transformed it into one of the most dynamic and fast-growing segments of the digital and creative economy. Over the years, the industry has churned out immense opportunities for innovation, employment generation, and has positioned India as a major game-making hub with rapidly developing capabilities.
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However, at the same time, the lack of a coherent and enabling legal framework led various online money games to exploit loopholes and create serious risks for individuals, families, and the nation. Addressing the Rajya Sabha, Union Minister for Electronics and Information Technology, Shri Ashwini Vaishnaw, said that according to an estimate, 45 crore people are negatively affected by online money games and faced a loss of more than Rs. 20,000 crores because of it. The Government has acted to close these gaps and protect citizens.”
Since many gaming platforms operate from offshore jurisdictions, regulating these platforms presents challenges in terms of extra-territorial jurisdiction and interstate inconsistencies. It was therefore expedient for the Ministry of Electronics & Information Technology to legislate over the sector in terms of the Allocation of Business Rules.
What are the key attributes of the bill?
Through this bill, a comprehensive framework has been developed to safeguard online gaming recreational activities and restrict linked harmful practices. The provisions include:
The bill blankets the whole of India and online money gaming services offered within the territory of India or operated from outside the territory of India.
Recognized as a lawful competitive sport in India, E-sports tournaments will be structured, and guidelines will be prepared by the Ministry of Youth Affairs and Sports. Synchronously, training academies, research centres, and technology platforms will be set up to upgrade the sector. Also, incentive schemes and awareness programmes will be launched to integrate e-sports into broader sports policies.
Safe and age-appropriate social online games with a focus on education, culture, or skills will be recognized and registered by the central government. There will be dedicated platforms and awareness campaigns to distribute and highlight the positive role of these games in building digital literacy and encouraging healthy recreation.
A complete ban will be imposed on online money games, including games of chance, games of skill, and their combination as well. The government has strictly prohibited the advertising and promotion of such games and has instructed banks and payment systems not to process any affiliated financial transactions. The government can also block access to unlawful platforms under the Information Technology Act, 2000.
A national-level regulatory authority will be instituted, or an existing one may be designated for oversight to supervise activities related to categorization and registration of online games, qualification checks for games and addressing public grievances. The organization will be rolling out guidelines, a code of practice, and directions to ensure compliance.
The bill brings strict punishments. Offering or facilitating an online money game can lead to imprisonment of up to three years and a fine of up to one crore rupees. Any financial transactions linked to these games are also punishable with similar penalties. Promoting and advertising such games can attract a jail term of up to two years and a fine of up to fifty lakh rupees.
The repeat offenders will face bitter punishments, including imprisonment of up to five years and fines of up to two crore rupees. Offences under key provisions will be cognisable and non-bailable, which means police can arrest without a warrant, and bail is not a right.
Companies and their officers, excluding the independent directors and non-executive directors who are not involved in day-to-day decisions (if they can show that they acted with due diligence), will be held accountable for the offences.
The central government can authorise officers to investigate, search, and seize both digital and physical property linked to offences. In certain circumstances, officers will also have the power to enter premises and make arrests without a warrant.
The provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023, which governs criminal procedure in India, will be followed by the investigators.
As elaborated earlier, the authority to frame rules for the promotion of e-sports and social games, alongside its recognition and registration, and the functioning of the online gaming authority and affiliated matters will be vested in the hands of the Central Government.
The Impact on the Online Gaming Industry: Is it a deathbed?
Big players like Zupee, Dream11, Games 24x7, MPL, Gameskraft, Nazara Technologies, and WinZo stand worried about the future of the gaming industry in India. As per reports, Zupee will discontinue all paid games, while Dream Sports (Dream11) will halt its real money gaming verticals at Dream 11, and shift focus on other verticals such as DreamSetGo, Dream Game Studios and Fancode, a pay-per-view sports streaming website which has signed a multi-year deal with popular Spanish football league La Liga.
“Zupee remains fully operational, and our players can continue to enjoy their favourite games on the platform. In line with the new Online Gaming Bill 2025, we are discontinuing paid games, but our hugely popular free titles like Ludo Supreme, Ludo Turbo, Snakes & Ladders, and Trump Card Mania will continue to be available for all users for free.” A company spokesperson said.
An industry that has attracted investments, including FDI worth billions of dollars, and has grown rapidly on the shoulders of real-money contests stands in shock, bracing for massive layoffs, shutdowns, and shattered entrepreneurial dreams. As the bill awaits the President's signature to become a law, its passing has directly affected India’s $3.8 billion gaming industry.