The government plans to criminalise the offering or promotion of online money gaming and make it an offence for banks, financial institutions or individuals to facilitate fund transfers related to such activities.
A bill to regulate the online gaming industry by prohibiting online money gaming was approved by the Cabinet on Tuesday and is expected to be introduced in the Lok Sabha tomorrow. The Promotion and Regulation of Online Gaming Bill, 2025 seeks to regulate the sector by promoting e-sports and online social games while banning online money gaming.
The Bill also prohibits advertisements for money gaming platforms and prescribes penalties and fines for violations, with stricter punishment for repeat offenders. It prohibits offering, aiding, abetting, inducing or otherwise in the offering of any online money gaming service and declares it as an offence. Authorities will also be empowered to block access to prohibited games and seize related property to ensure compliance.
Government sources said online money gaming is increasingly being used as a channel for money laundering, fraudulent transactions and other illicit activities, including cybercrime and terror financing. Offshore platforms have also been able to evade Indian tax and legal obligations, further complicating the situation. The absence of a central regulator has left the industry without uniform standards for content, user safety or financial practices, leaving players vulnerable and the sector without a coherent growth path.
According to the government, in the absence of a clear framework, both e-sports and online social games in India continue to operate in a regulatory grey zone, restricting the sector’s growth while exposing users, particularly young audiences, to various risks. Officials noted that there is currently no central authority overseeing online money gaming, while judicial interpretations of the distinction between “games of skill” and “games of chance” have been inconsistent, resulting in legal uncertainty and weak enforcement.
The Bill will accord formal recognition and governance of e-Sports, ‘enabling India to tap into the global competitive gaming ecosystem, promote sportsmanship, and open new career opportunities for youth’. The government claims that establishing institutional mechanisms for both e-Sports and online social games will support innovation, attract responsible investment, and ensure alignment with international best practices. The bill envisages the establishment of a new regulatory authority with an initial capital outlay of ₹50 crore and an annual recurring expenditure of Rs 20 crore. Implementation measures are expected to be rolled out within six months of Cabinet approval.