Game Over for Real-Money Gaming: Lok Sabha Passes Sweeping Ban Bill

New Delhi – The Lok Sabha on August 20, 2025, passed the Promotion and Regulation of Online Gaming Bill, bringing a sweeping regulatory shift to India’s online gaming industry.

The bill bans all money-based online games, regardless of whether they are skill- or chance-based. Games involving entry fees or deposits with the expectation of monetary winnings will now be illegal. E-sports are exempted from this prohibition.

Key provisions:
● Operators of banned platforms face up to 3 years’ imprisonment and fines up to ₹1 crore.
● Promoters and advertisers, including celebrities and influencers, face 2 years’ jail and fines up to ₹50 lakh.
● Banks and financial institutions are barred from enabling such transactions.
● Company executives can be held personally liable for violations.
● Authorities can conduct warrantless searches and arrests across physical and digital platforms.

The bill also creates a central authority to oversee the sector, register legal games (such as e-sports, educational, and recreational games), and enforce compliance.

While the move aims to curb money laundering, fraud, addiction, tax evasion, and terror financing, it threatens the survival of nearly 1,700 startups and platforms such as Dream11, MPL, and WinZO. Experts warn of potential job losses, reduced foreign investment, and migration of users to offshore sites.

On the other hand, the legislation is expected to boost e-sports and social gaming, with the government pledging support for innovation and cognitive development.

The bill now moves to the Rajya Sabha for debate, before Presidential assent makes it law.

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