Lok Sabha passes bill to ban online games played with money

New Delhi: The Lok Sabha on Wednesday passed the Promotion and Regulation of Online Gaming Bill, 2025, to ban online games played with money as the government aimed to check rising instances of addiction, money laundering, and financial frauds through such applications.

The bill, introduced by Union Minister for Electronics and Information Technology Ashwini Vaishnaw earlier in the day, was passed in voice vote, without a debate as opposition members raised slogans demanding a discussion on the special intensive revision of electoral rolls in Bihar by the Election Commission.

Once the legislation is passed by both Houses of Parliament, offering or facilitating online money gaming will be punishable by imprisonment of up to 3 years and/or a fine of up to Rs 1 crore.

Vaishnaw in his opening remarks said the government seeks to encourage e-sports and online games that foster educational and cultural values, skill development and social engagement.

He also said an authority will be set up to oversee four key segments : e-sports, educational games, social games and real money gaming. All platforms will have to register and comply with the rules set by the authority.

The bill prohibitions clause states, "No person shall offer, aid, abet, induce or otherwise indulge or engage in the offering of online money game and online money gaming service". It further bans banks and financial institutions from processing transactions for such platforms.

Insisting that online money gaming has become a matter of concern, the Minister said such platforms have led to addiction and have also been used for fraud and cheating.

The Minister underlined that several families have been destroyed because of this segment of online gaming. He further said that these games imbibe on opaque and cheating algorithms.

While asking the Opposition parties members to join the debate on the bill, Speaker Om Birla reminded them that several MPs had in the past demanded a ban on money gaming sites.

The bill also seeks to prohibit advertisement related to online money games as well as bars banks and financial institutions from facilitating or transferring funds for any of such games.

The bill outlaws all online betting and gambling activities -- from online fantasy sports to online gambling (like Poker, Rummy and other Card games) and online lotteries.

According to the bill, anyone offering online money gaming services in violation of the law will face imprisonment of up to three years or a fine of up to Rs 1 crore, or both. Those found advertising such services could face up to two years of jail and/or a fine of up to Rs 50 lakh. Banks and financial institutions facilitating transactions for money games will also be liable to penalties, including up to three years in jail or a fine of Rs 1 crore.

Repeat offences attract stricter punishment, with jail terms between three and five years along with higher fines. The Bill, however, does not criminalise players of online money games, treating them as victims rather than offenders. Importantly, offences under key sections are sought to be made cognisable and non-bailable.

The Bill defines an online money game as one played by a user by “paying fees, depositing money or other stakes, in expectation of winning in return of money or other stake, irrespective of whether such game is based on skill, chance or both.” It explicitly excludes eSports and online social games such as casual entertainment or skill-based formats that do not involve monetary stakes.