India’s government is preparing to crack down on the booming yet controversial world of real-money online gaming, with a new Bill that proposes blanket bans, multi-crore fines, jail terms, and penalties for celebrity endorsers of such platforms.
The proposed law—titled the Promotion and Regulation of Online Gaming Bill, 2025—was circulated to Members of Parliament late Tuesday and is expected to be introduced on Wednesday. Officials say the move is driven by national security concerns, as well as the growing social harms associated with money-based online gaming.
From Pro-Industry to Prohibition
The Bill marks a sharp departure from the government’s earlier stance. In April 2023, the IT Ministry had issued rules for online gaming that were largely seen as industry-friendly, aimed at boosting India’s digital economy.
Two years later, however, the government’s approach has pivoted dramatically. Rising cases of addiction, financial fraud, money laundering, and tax evasion have pushed regulators toward a prohibition-first framework, even as the sector races toward a projected $9 billion valuation by 2029.
Key Provisions of the Bill
Complete ban on real-money games — Platforms offering betting, gambling, or wagering in any form would be outlawed.
Harsh penalties — Multi-crore fines and prison terms for violators.
Celebrity liability — Influencers and promoters endorsing such platforms could face penalties.
Expanded government powers — Officials would be empowered to conduct warrantless searches and seizures against suspected offenders.
National Security at the Core
According to the draft, online gaming platforms have been flagged as potential channels for money laundering and illicit fund transfers, often using digital wallets and cryptocurrencies. Authorities have also raised alarms over these platforms being misused as communication hubs for terror organisations and offshore entities bypassing India’s tax regime.
Industry on Edge
While consumer protection groups have welcomed the move, industry voices warn it could wipe out thousands of startups and jobs in India’s fast-growing gaming ecosystem. With Parliament set to debate the Bill, the gaming sector is bracing for one of its toughest regulatory battles yet.