Section 5: Prohibition on Offering Online Money Games and Services

Overview

Section 5 is the central part of the Online Gaming Bill, 2025 that bans offering or running online games where people can win money. This prohibition applies to all types of online games – skill-based, chance-based, or a mix of both – and covers how they are delivered (apps, websites, etc.), and where they are hosted (in India or abroad).

Key Provisions

• Broad Prohibition: It is illegal to offer, operate, enable, aid, or otherwise participate in providing any online money game or service. This is a very wide-ranging restriction.
• Technology Neutrality: The law doesn’t care how the game is delivered – whether it’s an app, a website, or through newer technologies.
• Jurisdictional Reach: The ban applies even if the game is hosted outside India, as long as it targets Indian users.
• Exceptions: E-sports and online social/educational games are specifically excluded, provided they meet the definitions and recognition criteria outlined in Chapters 1 and 2 of the Bill.
• Compliance Duty: Platforms must classify their games according to the Bill’s definitions and keep records to prove they comply with the law. If unsure, they must seek clarification from the designated Authority.

Practical Impact

This section significantly impacts several stakeholders. For citizens, it aims to protect them from the potential harms of online gambling and addiction. For businesses, it means a complete ban on offering real-money gaming services unless they fall under the specific exceptions. Government authorities will be responsible for enforcing this prohibition and taking action against violators. Companies will need to invest in compliance measures, including game classification, payment system adjustments, and monitoring.

Examples

• Example 1: Simple Application – A website that allows users to deposit money and play a rummy game for cash prizes is directly prohibited under Section 5.
• Example 2: Borderline Situation – A fantasy sports platform that allows users to create teams and compete for cash prizes based on real-world sports events. This would likely be prohibited unless it can demonstrate that its game is predominantly a game of skill and meets the requirements for recognition as an e-sport under Chapters 1-2. Simply adding a disclaimer about skill doesn’t guarantee compliance.