Lok Sabha Approves Bill to Ban Online Games Offering Monetary Gains

The Lok Sabha on Wednesday passed the Promotion and Regulation of Online Gaming Bill, 2025 amid uproar by the Opposition. The Bill, passed by a voice vote without debate, aims to curb the rising issues of addiction, money laundering, and financial fraud linked to online money gaming applications.

Definition and Scope

The legislation defines an online money game as one played by a user by depositing money with the expectation of winning monetary or other tangible enrichment. Unlike harmless e-sports or social games such as chess and solitaire, these money-based games are viewed as harmful due to their addictive and exploitative nature.

Key Provisions and Penalties

Once enacted by both Houses of Parliament, the law will make offering or facilitating online money gaming a punishable offense. Violators will face up to three years of imprisonment and/or a fine of up to ₹1 crore. The Bill also strictly prohibits advertisements related to online money games and bars banks and financial institutions from facilitating or transferring funds linked to such activities. This move is intended to choke the financial lifeline of such games and deter both operators and participants.

Minister’s Remarks

Union IT Minister Ashwini Vaishnaw highlighted the dual nature of digital technology in his remarks. While it has delivered numerous benefits, he said, online money games have emerged as a serious social and economic challenge. He pointed out that many individuals have become addicted, recklessly spending and losing their earnings, leading to broken families and tragic consequences. Citing Karnataka as an example, he revealed that 32 suicides were reported in 31 months due to financial losses from online money gaming. He further emphasized that the World Health Organization (WHO) has already flagged the dangers of such gaming practices.

Parliamentary Proceedings

Lok Sabha Speaker Om Birla acknowledged the social importance of the Bill and said he was willing to allow time for detailed discussion. However, due to continuous Opposition protests and slogan-shouting, the Bill was passed quickly by a voice vote.

Objectives of the Bill

The Bill has a two-pronged approach: promotion and regulation.

1. Promotion and Regulation of Non-Monetary Gaming: It seeks to promote and regulate the broader online gaming sector, including e-sports, educational games, and social gaming. For this purpose, it proposes the creation of an Authority to provide coordinated policy support, strategic development, and regulatory oversight.

2. Ban on Online Money Gaming: At the same time, it seeks to prohibit the offering, facilitation, promotion, and participation in online money games, particularly those operating across state borders or from foreign jurisdictions. The restrictions extend to advertising and financial facilitation, aiming to protect users, especially youth and vulnerable populations, from financial, psychological, and social harm.

Broader Goals

The legislation aspires to:

• Encourage responsible use of digital technologies.

• Maintain public order and protect public health.

• Safeguard the integrity of financial systems.

• Uphold the security and sovereignty of the State.

• Establish a uniform, national-level legal framework for online gaming.

Restrictions Imposed

The Bill explicitly bans:

• Any individual or entity from offering, aiding, abetting, or inducing online money games.

• Any form of advertisement, whether direct or indirect, across all media platforms.

• Banks, financial institutions, or intermediaries from enabling transactions related to online money gaming.

Implementation

To ensure smooth enforcement, the Bill empowers the Centre to set up an Authority headed by a Chairperson. This body will play a critical role in regulating the sector, offering guidance, and ensuring that the objectives of the Act are implemented effectively.

Conclusion

In essence, the Promotion and Regulation of Online Gaming Bill, 2025, seeks to draw a clear line between legitimate online gaming activities that promote learning and recreation, and harmful money-driven games that lead to addiction, financial ruin, and social distress. By combining strict prohibitions with a regulatory framework, the Bill aims to protect individuals, preserve public health, and maintain financial integrity, while encouraging the responsible growth of India’s digital gaming sector.