Breaking: Rajya Sabha passes Online Gaming Bill: esports recognised, Money Games outlawed

CPI (M) member of Parliament John Brittas moved the resolution to send the Bill to select committee but was rejected.

By  Imran Fazal| Aug 21, 2025 2:32 PM
Introducing the Bill, Union Minister for Electronics and IT Ashwini Vaishnaw framed it as a measure to protect the youth and middle-class families from the growing perils of online money gaming.

In a decisive move to reshape India’s digital entertainment landscape, the Rajya Sabha on Wednesday passed the Promotion and Regulation of Online Gaming Bill, 2025. The landmark legislation seeks to regulate e-sports, educational, and social gaming while imposing a blanket ban on money-based online games that involve monetary stakes.

Introducing the Bill, Union Minister for Electronics and IT Ashwini Vaishnaw framed it as a measure to protect the youth and middle-class families from the growing perils of online money gaming. “Prime Minister Modi has always favoured the youth and middle-class families. Just as the government acted against chit fund scams and electronic cigarettes, this Bill will bring relief to society by tackling the menace of money gaming,” he said.

Vaishnaw underlined the rising threat of online money games, which he described as a “public health issue”. Citing media reports, he noted that nearly 45 crore people have been affected, with losses pegged at around ₹20,000 crore. “These platforms are opaque, exploitative, and linked to hazards such as money laundering and terror funding,” the minister cautioned, adding that while the Bill may face legal challenges, the government is “fully prepared to defend it in court.”

CPI (M) member of Parliament John Brittas moved the resolution to send the Bill to select committee but was rejected.

The Rajya Sabha passed Promotion and Regulation of Online Gaming Bill, 2025 amid chaos and protests.

The legislation draws a sharp line between different segments of the online gaming industry. While casual games and esports will be promoted as educational and skill-based, money-based online games will be outlawed.

To support esports, the Bill formally recognises it as a legitimate competitive sport. It provides for government backing of training academies, research centres, and technology platforms to encourage its growth. Social and educational games will also be promoted with safeguards ensuring age-appropriate content and integration into learning initiatives.

On the other hand, the Bill enforces a strict crackdown on money gaming. Advertisements for such platforms—including those aired on TV, print, digital media, and through celebrity endorsements—will be banned. Violations could attract imprisonment of up to two years, fines of up to ₹50 lakh, or both. Repeat offenders face even harsher penalties, including three years in prison and fines of up to ₹1 crore.

The Bill also bars financial institutions and intermediaries from processing transactions related to online money games. Offences are categorised as cognizable and non-bailable, with investigative authorities empowered to search, seize, and block such platforms without a warrant.

Establishing a Central Authority

A central regulatory authority has been proposed to oversee compliance, frame policy, and encourage innovation in the regulated gaming sector. The authority will be established with an initial outlay of around ₹50 crore and recurring expenses of ₹20 crore annually, drawn from the Consolidated Fund of India.

Addressing Addiction and National Security Concerns

The government has defended the ban citing fraud, tax evasion, and links to illicit financing through offshore gaming platforms. The Statement of Objects and Reasons stresses the manipulative and addictive design of money gaming apps, which fuel compulsive behaviour, financial losses, and mental health concerns among youth and vulnerable communities.

“The government wants to support esports and casual games. We want to protect the interest of the society, and this Bill ensures that protection,” Vaishnaw said, urging the House to pass the legislation unanimously.

The Bill was cleared amid protests in the Lok Sabha earlier this week and now moves toward enactment with Presidential assent. Once enforced, it will mark a major policy shift—potentially positioning India as a global leader in regulated gaming while decisively shutting down avenues for money-based online gambling.

First Published onAug 21, 2025 2:28 PM

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