‘Play online money games, face 2years jail and heavy fines’: Full details of new online gaming bill

The Union government has introduced the Promotion and Regulation of Online Gaming Bill, 2025, a sweeping legislation that bans online money games and imposes strict penalties for violations.

The law makes it clear that “no person shall offer, aid, abet, induce or otherwise indulge in the offering of online money games,” and also prohibits advertising such games, stating that “no person shall make… any advertisement… which directly or indirectly promotes or induces any person to play any online money game.” Banks and other financial institutions are barred from facilitating payments for these games, effectively cutting off the financial channels that support online gambling.

The new bill prescribes severe punishments for contraventions. “Any person who offers online money gaming service in contravention… shall be punished with imprisonment for a term which may extend to three years or with fine which may extend to one crore rupees or with both,” while those promoting or advertising these services may face up to two years in jail or fines up to fifty lakh rupees.”

Repeat offenders face mandatory minimum imprisonment of two to three years and fines ranging from fifty lakh to two crore rupees. Offences under sections 5 and 7 of the law are “cognizable and non-bailable,” underscoring the government’s intent to strictly enforce the ban. Corporate offenders, including directors or officers found guilty by consent, connivance, or neglect, will also be held accountable, although independent or non-executive directors not involved in decision-making are exempt.

While online money games are banned, the legislation aims to promote other segments of the gaming industry. It seeks “to promote and regulate the online gaming sector including e-sports, educational games and social gaming” and establishes a central Authority to provide policy support, strategic development, and regulatory oversight.

E-sports are defined as competitive online games determined by “physical dexterity, mental agility, strategic thinking or other similar skills” and may include registration fees and performance-based prize money, but “shall not involve the placing of bets, wagers or any other stakes.” Similarly, online social games are encouraged for recreation, entertainment, or skill development, provided that any “time access fee” is not in the nature of a stake or wager, and the law clarifies that “other stakes” include anything equivalent or convertible to money, including virtual credits, tokens, or coins purchased directly or indirectly.

The bill underscores the rapid growth of the online gaming sector, calling it “one of the most dynamic and fastest-growing segments of the digital and creative economy,” and notes India’s potential to lead globally with its young, tech-savvy workforce and expanding domestic market.

At the same time, it warns that the sector has functioned without “a dedicated institutional and legal framework,” giving rise to manipulative design features, addictive algorithms, bots, and undisclosed agents that compromise fairness, transparency, and user protection, often leading to financial ruin and psychological harm. Platforms offering online money games are frequently “aggressively marketed through pervasive advertising campaigns, including celebrity and influencer endorsements,” which amplifies their reach among youth and vulnerable groups.

To enforce the ban, the Central Government is empowered to block access to any information related to online money gaming services, notwithstanding section 69A of the Information Technology Act, 2000. Designated officers can investigate offences, enter physical or digital premises, and even override security codes if necessary.

The law provides legal safeguards and accountability measures, including the requirement that non-police officers making arrests must promptly produce the accused before a magistrate or police officer. Section 17 grants immunity, stating that “no suit, prosecution or other legal proceedings shall lie against the Central Government or the Authority… for anything which is done in good faith” under the Act.

Finally, the legislation allows the government to frame rules for registering and categorising games, promoting e-sports and social gaming, prescribing Authority functions, and issuing orders to “remove any difficulty” in implementing the law within two years of its commencement. By combining strict bans on online money games with incentives for skill-based and recreational gaming, the government aims to ensure public health, financial security, and responsible innovation in the digital gaming ecosystem.