The Lok Sabha approved the Promotion and Regulation of Online Gaming Bill, 2025 on Wednesday during the monsoon session. The bill aims to support e-sports and casual gaming but prohibits real-money gaming and online betting. Lawmakers cited concerns over addiction, financial losses, and security risks as reasons for the ban.
The bill, introduced by Electronics and IT Minister Ashwini Vaishnaw, was passed without debate. Opposition members raised slogans demanding discussion on the special revision of electoral rolls in Bihar by the Election Commission, which delayed parliamentary debates.
Penalties and Prohibitions
Once approved by both Houses and signed by the President, offering or facilitating online money gaming will carry strict penalties. Offenders may face up to three years in prison and/or a fine of up to ₹1 crore.
The bill also bans advertisements related to online money gaming. Banks and financial institutions are prohibited from transferring funds for such games.
Why the Government Acted Now
Minister Vaishnaw explained the urgency of the legislation: “People lose their life’s savings in online money gaming.” He added that the government wants to reduce addiction and financial harm, while promoting e-sports and social games.
Vaishnaw also warned that some platforms have been used for money laundering, financing terrorism, and even as messaging channels by terrorist organisations. He highlighted that many online money gaming services operate offshore to evade taxation and bypass state regulations, creating cross-border law enforcement challenges.
Impact on Indian Apps
The Indian online gaming market is projected to reach $3.6 billion by 2029, according to venture capital firm Lumikai.
Some major apps likely affected include:
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Dream11: Valued at $8 billion, popular for fantasy cricket. Users can play with as little as ₹8 ($0.10), with prize pools up to ₹1.2 million ($14,000). Its popularity peaks during the IPL season.
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Mobile Premier League (MPL): Valued at $2.5 billion.
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Others: My11Circle, Howzat, SG11 Fantasy, WinZO, Games24x7 (parent of My11Circle and RummyCircle), Junglee Games (Rummy & Poker), PokerBaazi, GamesKraft (RummyCulture), Nazara Technologies (investor in PokerBaazi).
Following the bill’s passage, shares of Nazara Technologies Ltd. dropped 13% in Mumbai. Casino operator Delta Corp Ltd. pared losses and ended 1% up after an earlier 7% decline. Bloomberg reported that Dream11 and MPL declined to comment.
Next Steps
The bill also recommends a regulator for e-sports, educational gaming, and social games. It now needs approval from the Rajya Sabha and the President’s signature to become law.