Online Gaming Bill 2025: Real-Money Games Banned, E-sports Recognised — Full Breakdown, Penalties & What’s Next

Overview (What happened today)

The Lok Sabha has passed the Promotion and Regulation of Online Gaming Bill, 2025 by voice vote. The Bill seeks to ban online money games nationwide, while recognising and promoting e-sports and social/educational games. It also creates a central Authority for sector oversight. (Status: Lok Sabha passed; further stages pending.) The Indian Express

What the Bill really does (in plain English)

1) What counts as an “online money game”

An online money game is any game played online (skill, chance, or both) where users pay fees/deposit money/other stakes with an expectation of monetary gain. E-sports are explicitly excluded. PRS Legislative Research

2) What’s allowed vs not allowed

• Allowed / Promoted:
• E-sports (recognised under National Sports Governance Act; competition-based, skill-driven; may charge participation fees/prize money). PRS Legislative Research
• Online social/educational games (recreation/learning; may charge subscription or one-time access not in the nature of stakes/wagers). PRS Legislative Research
• Prohibited (nationwide):
• Offering/operating online money games.
• Advertising/endorsements that directly or indirectly promote online money games.
• Payment facilitation for online money gaming (banks, payment gateways, etc.). PRS Legislative Research

3) Who will regulate this space

The Centre may constitute/designate an Authority to (a) decide if a game is an “online money game”, (b) recognise/categorise/register online games, and (c) issue directions, guidelines, and codes of practice. A financial memorandum pegs initial capex at ~₹50 crore and recurring ~₹20 crore annually. PRS Legislative Research+1

Penalties, offences & enforcement

• Core offences (Section 9):
• Operating online money gaming service: up to 3 years’ jail or fine up to ₹1 crore, or both.
• Advertising such games: up to 2 years’ jail or fine up to ₹50 lakh, or both.
• Payment facilitation: up to 3 years’ jail or fine up to ₹1 crore, or both.
• Repeat offences escalate (e.g., operating offence can go 3–5 years and fine up to ₹2 crore). PRS Legislative Research
• Cognizable & non-bailable: Offences under Sections 5 (operating) and 7 (payment facilitation) are cognizable and non-bailable. PRS Legislative Research
• Corporate liability: Directors/managers in charge at the time of offence can be prosecuted unless they show due diligence; consent/connivance/neglect triggers liability. PRS Legislative Research
• Blocking powers: Non-compliance can lead to blocking of services/content under IT Act §69A. PRS Legislative Research
• Investigations, search & arrest:
• Centre may authorise officers to investigate offences.
• Entry, search and arrest without warrant by authorised officers (with BNSS safeguards), including access to digital records and virtual storage. PRS Legislative Research
• Central directions & compliance: Everyone must comply with Central Government directions related to online money gaming services. PRS Legislative Research
• Overriding effect: The Act (when in force) will prevail in case of inconsistency with other laws. PRS Legislative Research

What this means (quick take)

• For users: Real-money fantasy, rummy/poker-type apps, betting platforms, etc., would be illegal nationwide if/when the Bill becomes law. Expect app removals and payment blocks. (Until then, it’s the Bill’s intent.) PRS Legislative Research
• For companies: Sharp compliance pivot; ads and celebrity endorsements for real-money formats become offences; KYC/payment rails for such formats will be choked. Industry groups warn of job impacts. mint
• For policy landscape: Shifts from state-by-state patchwork to a national regime, with e-sports/social games encouraged and money-gaming banned. Rules will flesh out registration, categorisation, and Authority powers post-enactment. PRS Legislative Research+1
• Where things stand: Lok Sabha passed; needs Rajya Sabha passage and Presidential assent to become law. Media/live updates confirm the Lok Sabha stage. The Indian Expresswww.ndtv.com

FAQs

Q1. Are “skill-based” money games exempt?

No. The definition covers games “irrespective of skill or chance” where money/stakes are paid with expectation of monetary gain. PRS Legislative Research

Q2. Can social games charge fees?

Yes—subscription/one-time access is fine if not a stake/wager, and the game is for entertainment/education and not an online money game or e-sport. PRS Legislative Research

Q3. Can the government block non-compliant apps/sites?

Yes—blocking is possible via IT Act §69A for continued violations. PRS Legislative Research