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Legislative bills

India Passes Landmark Bill to Regulate Online Gaming Industry

Strategic Insights

— 2 min read

The Indian government has taken a significant step towards regulating the country's growing online gaming industry with the passage of the Promotion and Regulation of Online Gaming Bill, 2025. The Bill, which has cleared both Houses of Parliament, aims to ban all forms of online money games, including fantasy sports, poker, rummy, and digital lotteries, while promoting e-sports and safe, skill-based social gaming.

The legislation now awaits Presidential assent, after which it will impose penalties on service providers, advertisers, and financial institutions that support banned games, with jail terms of up to three years and fines of up to Rs 1 crore for first-time offenders.

Key Takeaways:

  • The Bill bans all forms of online money games, including fantasy sports, poker, rummy, and digital lotteries, citing concerns over addiction, fraud, and exploitation of users.
  • The legislation promotes e-sports and safe, skill-based social gaming, with the government committing support for game creators through new schemes and programmes.
  • Over 45 crore Indians have been negatively affected by online money games, suffering losses exceeding Rs 20,000 crore.
  • The World Health Organization classifies "gaming disorder" as a recognised mental health condition, reinforcing the urgency of regulatory action.
  • The Bill encourages the structured growth of e-sports and social games while introducing strict penalties for those offering, promoting or financing banned money games.
  • The legislation mandates the creation of a new Online Gaming Authority to classify and register games, issue guidelines, and respond to complaints.
  • The industry is expected to be severely impacted, with more than 400 companies shutting down and over two lakh jobs at risk.
  • The sector supports over Rs 20,000 crore in taxes annually and has attracted Rs 25,000 crore in foreign direct investment as of June 2022.

Statistics:

  • Over 45 crore Indians have been negatively affected by online money games.
  • Losses exceeding Rs 20,000 crore have been suffered by Indian users.
  • The industry supports over Rs 20,000 crore in taxes annually.
  • The sector has attracted Rs 25,000 crore in foreign direct investment as of June 2022.
  • The online gamer base grew from 36 crore in 2020 to over 50 crore in 2024.

Sources:

  • India's Prime Minister Narendra Modi post on X.
  • Union Electronics and IT Minister Ashwini Vaishnaw's post on X.
  • The Press Information Bureau.
  • The World Health Organization.
  • The All India Gaming Federation (AIGF).
  • The E-Gaming Federation (EGF).
  • The Federation of Indian Fantasy Sports (FIFS).
  • Published by HT Digital Content Services with permission from Voice & Data.

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