The Rajya Sabha on Thursday passed the Promotion and Regulation of Online Gaming Bill, 2025, without any debate, following its passage in the Lok Sabha a day earlier. The Upper House cleared the legislation after rejecting amendments proposed by Opposition members.
Key provisions of the Bill
- The Bill, introduced by Electronics and IT Minister Ashwini Vaishnaw, targets the rising concerns of online gaming addiction, money laundering, and financial fraud. Its main provisions include:
- Ban on real-money games (RMG): All online games played for money are prohibited.
- Advertising restrictions: The Bill bars promotion and advertisements of such games.
- Financial restrictions: Banks and financial institutions are prohibited from facilitating transactions for real-money gaming activities
Industry impact
The Bill effectively bans all forms of real money gaming in the country. Industry players, who had been preparing for a 40 per cent ‘sin tax’ under the new GST regime, are now reeling from the effects of what is being described as a death knell for the sector.
Between 2020 and 2024, investors poured nearly $1 billion into real-money gaming (RMG) companies. With the new Bill in place, much of this capital is at risk, as the sector faces legal uncertainty and restricted operations. RMG companies also claim that they contribute close to Rs 20,000 in annual taxes and levies, and provide close to 200,000 jobs.
Among the 400 or so companies in the sector are big names like Dream11, Games24x7, Junglee Games, Mobile Premier League (MPL), Head Digital Works, Zupee, Gameskraft, Nazara Technologies, among others. Incidentally, Dream11 is also the official lead sponsor of the Indian cricket team across all three formats of the game.
RMG companies have also raised concerns that the blanket ban could drive players to more risky, offshore alternatives that do not – and don’t have to – comply with Indian rules and regulations. Such offshore entities typically operate from global tax havens like Malta, the British Virgin Islands, and Curaçao, an earlier Business Standard report noted.
How Tamil Nadu set a precedent
In 2022, Tamil Nadu passed the Prohibition of Online Gambling and Regulation of Online Games Act, which banned online games of chance such as rummy and poker. The law set penalties for operators, advertisers, and players involved in these games. By 2023, several gaming platforms had blocked users in Tamil Nadu from participating in real-money contests in compliance with the law.
The new Bill, which the Union Cabinet cleared on Tuesday, will expand the ban on RMGs a nationwide rule. The government has described the move as a balanced measure to protect public interest while still allowing for growth in skill-based and social gaming. The government emphasised that the Bill targets financial fraud, addiction, and associated social risks without hindering the e-sports and online entertainment segment.
Government focuses on safe gaming and e-sports growth
Speaking to Business Standard, Electronics and IT Minister Ashwini Vaishnaw outlined the rationale behind the Online Gaming Bill. He said the sector comprises three segments: e-sports, online social gaming, and real-money games.
“The Bill is designed to promote e-sports and social gaming, making India a hub for game development. The country’s creative talent, cultural diversity, and technological capabilities will be leveraged in these two segments,” Vaishnaw explained.
He added that real-money games pose serious societal risks, including cases of suicides and middle-class families losing their entire savings. “The harmful effects of online gambling have been a concern across political parties. This is why we have introduced the Bill,” he said.
