Lok Sabha Passes Bill to Ban Online Gaming with Real Money
The Lok Sabha has passed the Promotion and Regulation of Online Gaming Bill, 2025, which imposes a blanket ban on all online games involving monetary deposits, including fantasy sports and card games. Citing concerns over addiction, financial fraud, and money laundering, the legislation introduces severe penalties, with up to three years imprisonment and a ₹1 crore fine for operators. While banning money games, the bill also establishes an authority to regulate and promote e-sports and online social gaming.
Unpacked:
Real-money gaming involves online games where players deposit money to play (like fantasy sports and card games), now banned. E-sports, in contrast, are organized, competitive gaming events—often with prize money—but do not require players to pay to participate. The bill bans the former but seeks to promote and regulate the latter.
The government cited concerns about addiction, financial losses, fraud, and money laundering, as well as reported cases of suicide linked to monetary losses in such games. Officials believe banning these games will protect vulnerable individuals and address broader societal harms.
The ban threatens to disrupt a sector valued at around $23 billion, potentially causing widespread shutdowns of real-money gaming platforms, job losses, and loss of investment. However, the e-sports and social gaming segments may benefit from increased recognition and support.
A national-level Online Gaming Authority will be established. It will categorize and register games, decide which constitute money games, regulate platforms, handle complaints, and promote e-sports and social gaming through funding and legal recognition.