India: Bill introduced that would ban real-money online games nationally
New legislation seeks to criminalise operators, advertisers and financial enablers of gambling disguised as games.
Key points:
– Union Cabinet approves national bill to regulate online gaming involving money
– Criminal penalties proposed for operators, advertisers and financial facilitators
– Distinction made between gambling and eSports or casual games
India is looking at its first national law targeting real-money online gaming, following approval of the Promotion and Regulation of Online Gaming Bill 2025 by the Union Cabinet chaired by Prime Minister Narendra Modi.
The proposed legislation seeks to address public concerns over gambling addiction, fraud and inconsistent regulation across Indian states. It aims to establish a uniform legal framework that criminalises the offering and promotion of online games involving monetary stakes.
According to reports, the bill defines an online money game as any digital game that involves the deposit of money or stakes with the expectation of winning money or rewards. It clearly excludes eSports and social games from this category.
The law prohibits operating or facilitating such games, advertising or endorsing them, and handling financial transactions related to them. Offenders may face imprisonment of up to three years or a fine of up to RS 1 crore (US$120,000). Repeat violations could attract penalties of up to five years in prison. Promoters and advertisers may be sentenced to two years and fined up to RS 50 lakh.
Good to know: Players will not face prosecution under the bill. The legislation treats them as victims of predatory systems rather than as perpetrators
The focus remains on penalising those who profit from or enable online gambling.
A regulatory authority will be tasked with determining whether a game falls under the category of online money gaming. This assessment will be made through due inquiry, providing legal clarity for operators, users and enforcement agencies.
The bill is expected to be introduced in Parliament shortly.
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