The proposed new Online Gaming Promotion and Regulation Bill 2025 comes as a big jolt to the industry that has brought in an inflow of Rs 41,000 crore in April-July 2025 via mere UPI transactions. An estimated 2 lakh jobs are at risk if real money games (RMG) are banned. The bill was tabled by the Minister for Electronics and Information Technology, Ashwini Vaishnaw, in the Lok Sabha today. The legislation was flagged green by the union cabinet on Tuesday, which seeks the imposition of a blanket ban on online games involving money.
Per the bill’s draft, there’s a provision of 3 years of jail or a fine of up to Rs 1 crore for individuals or firms offering online money gaming services. Advertising these services will be a punishable offense with up to 3 years of jail and/or a fine of up to Rs 50 lakh. Banks and financial institutions that facilitates transactions of real money games will also be prosecuted with 3 years of jail or fine of up to Rs 1 crore
India embraces the positive power of gaming!
The Online Gaming Bill, 2025 aims to boost eSports and social gaming — while taking a firm stand against harmful money gaming practices.
A bold move for a safer, smarter gaming future! pic.twitter.com/mzmnCOK4Lq
— Ministry of Information and Broadcasting (@MIB_India) August 20, 2025
BREAKING: “There is a political depth of feeling across the aisle,” said a government official familiar with the drafting of the online gaming bill. “The political class is getting its reading from the ground, and they feel strongly about the societal harm and debt spiral.”… https://t.co/hf0X7f8dZa pic.twitter.com/RwxGgZyBY1
— Chandra R. Srikanth (@chandrarsrikant) August 20, 2025
Centre moves to ban real-money online gaming
I&B Minister Ashwini Vaishnaw: “Online gaming firms misused for terror financing & money laundering”
New Online Gaming Bill cleared by Cabinet, introduced in Lok Sabha
Proposes ban on all money-based gaming transactions
Likely… pic.twitter.com/0AUTGaHaUQ
— Nabila Jamal (@nabilajamal_) August 20, 2025
India’s fast-growing #onlinegaming sector is staring at a potential wipeout, with the government preparing to introduce the “Promotion & Regulation of #OnlineGamingBill 2025” in Parliament. According to sources, the draft legislation seeks to prohibit all money-based online… pic.twitter.com/CnZ9R8z9pA
— Business Today (@business_today) August 19, 2025
The Government has introduced the Promotion and Regulation of Online Gaming Bill, 2025 to boost innovation and ensure citizen protection pic.twitter.com/DmXMgBJLnW
— IANS (@ians_india) August 20, 2025
Shark Anupam Mittal took to X/Twitter and expressed his disappointment over the move. The Shaadi Dot Com founder remarked,
Real-money gaming banned. Isn’t it just going to move back to illegit betting like other banned activities have?”
Tax revenue bhi gaya!” he added.
To give you context, currently the online gaming industry pays Rs 20,000 crore in GST.
Real-money gaming banned Isn’t it just going to move back to illegit betting like other banned activities have? Tax revenue bhi gaya
— Anupam Mittal (@AnupamMittal) August 20, 2025
Reacting to the bill, opposition leader Karthi P Chidambaram took to X/Twitter and remarked,
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. It risks creating significant national security concerns by driving financial transactions offshore and pushing users toward the dark web.”
The Congress leader added,
The bill threatens to eliminate 400,000 jobs, erase ₹20,000 crore in GST and TDS revenue (2024 data), and wipe out $6 billion in investments, while stifling future funding opportunities for game developers and related sectors.”
He suggested,
The government should refer the bill to a select committee and hold public hearings to ensure a balanced and informed approach.”
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. It risks creating significant national security concerns by driving financial…
— Karti P Chidambaram (@KartiPC) August 20, 2025
Speaking on the issue Congress MP from Thiruvanthapuram, Shashi Tharoor stated
“I had written an article earlier stating that by banning online gaming, we are simply driving it underground, whereas it could actually serve as a useful source of revenue for the government if legalised, regulated, and taxed. In my view, many countries have studied this issue in great detail and concluded that legalising and taxing online gaming allows governments to generate funds that can be used for various worthy causes.”
He added, “When you ban it, unfortunately, it goes underground, and that’s where criminal mafias step in and profit from it. I don’t know why the government has chosen this path, but this is the stand they’ve taken. And with Parliament not functioning effectively, the bill will likely be passed without any proper discussion.”
VIDEO | Congress MP Shashi Tharoor on the online gambling bill says “I had written an article earlier stating that by banning online gaming, we are simply driving it underground, whereas it could actually serve as a useful source of revenue for the government if legalised,… pic.twitter.com/tGLsSNhCtS
— Press Trust of India (@PTI_News) August 20, 2025
Cover: Illustrative / Pexels
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