Govt to table Gaming Bill today, seeks RMG ban and tough penalties on advertising

Violators face penalties including up to two years’ imprisonment, fines of up to ₹50 lakh, or both, with repeat offenders risking stricter punishment of up to three years in jail and fines up to ₹1 crore.

By  Imran Fazal| Aug 20, 2025 8:05 AM
The Bill to be introduced by Minister Ashwini Vaishnaw, outlines the establishment of a central regulatory authority that will provide policy support, oversee compliance, and promote innovation in the sector.

The Union Government will introduce the Promotion and Regulation of Online Gaming Bill, 2025 in the Lok Sabha today. The proposed legislation aims to regulate e-sports, educational and social gaming while imposing a blanket ban on online money games that involve monetary stakes. The Bill also prohibits advertisements of such prohibited games.

The Bill to be introduced by Minister Ashwini Vaishnaw, outlines the establishment of a central regulatory authority that will provide policy support, oversee compliance, and promote innovation in the sector. According to the financial memorandum, the authority will require an initial capital expenditure of around ₹50 crore, followed by an annual recurring cost of ₹20 crore from the Consolidated Fund of India.

The Bill formally recognises e-sports as a legitimate competitive sport and directs the government to support training academies, research centres, and technology platforms to encourage its growth. Social and educational games will also be promoted, with specific measures to ensure safe, age-appropriate content and to integrate gaming into educational and skill development initiatives.

At the same time, the legislation takes a hard stance on money-based online games. If turned into a law, it will be illegal to publish or broadcast any form of advertisement — whether on television, print, digital platforms, or through influencer and celebrity endorsements — that directly or indirectly promotes online money games. Violators face penalties including up to two years’ imprisonment, fines of up to ₹50 lakh, or both, with repeat offenders risking stricter punishment of up to three years in jail and fines up to ₹1 crore.

The Bill states, "Any person who makes or causes to make advertisement in any media, in contravention of section 6, shall be punished with imprisonment for a term which may extend to two years or with fine which may extend to fifty lakh rupees or with both."

The Bill also bans financial institutions and intermediaries from facilitating transactions for money gaming services and prohibits all forms of advertisements, endorsements, and promotions related to them. Offences under this category will be treated as cognizable and non-bailable.

The government justified the prohibition by pointing to a surge in fraud, money laundering, tax evasion, and even links to terrorist financing through offshore gaming platforms. The Statement of Objects and Reasons highlights the manipulative algorithms and addictive design features of such platforms, which often lead to compulsive behaviour, financial ruin, and mental health crises, particularly among youth and economically vulnerable populations.

The Bill empowers designated authorities and officers to investigate, search, and seize property related to online money gaming operations, both physical and digital, without a warrant. Any non-compliance could also result in blocking of online money gaming platforms under provisions of the Information Technology Act, 2000.

With the President’s recommendation secured under Article 117 of the Constitution, the Bill is slated for detailed discussion in the Lok Sabha and Rajya Sabha. If enacted, it will mark a major shift in India’s digital policy, positioning the country as a potential global leader in regulated online gaming while cutting off avenues for money-based gaming.

First Published onAug 20, 2025 8:05 AM

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