Parliament passes Online Gaming Bill 2025: Ban on money games, no punitive action on players

Parliament on Thursday passed the Promotion and Regulation of Online Gaming Bill, 2025, banning online money games while promoting eSports and online social gaming.

The Rajya Sabha approved the bill without debate amid uproar, rejecting amendments moved by opposition lawmakers.

The Lok Sabha cleared the bill a day earlier.

The bill, piloted by Electronics and IT Minister Ashwini Vaishnaw, proposes the creation of a new authority to regulate the online gaming sector, classify different types of games, and enforce compliance.

Under the law, e-sports and social or educational online games will be recognised and promoted, while money-based online games will be banned outright.

It also seeks to prohibit advertisements related to online money games and bar banks and financial institutions from facilitating or transferring funds for any of such games. Online money games are played by depositing money in expectation of winning monetary and other rewards.

Vaishnaw said the legislation aims to address risks of addiction, money laundering and cross-border fund flows linked to money games. “There are cases of money laundering, issues related to serious instances where even support to terror activities has been noted in online money games,” he told PTI in an interview.

The bill, however, does not criminalise anyone playing online money games, to avoid any harassment.

The minister said that the bill recognises users as victims of online money gaming. "That is why there is no punitive action on the users. However, those offering online money gaming service and those advertising for these services as well as the people who are enabling the financial transactions for such services are subject to liabilities under this Bill," he explained.

While industry groups have warned the ban could hurt investment and jobs, Vaishnaw said the government would launch programmes to spur growth and create new opportunities in the broader gaming industry.

"Two of the three segments, e-sports and online social gaming, will be promoted and encouraged. And we will be creating programs which help the growth of the gaming industry, per se. And the people who are employed in the gaming industry will find new opportunities. Online money gaming...there is a demonstrated significant negative impact on society," he said.