3-year jail, ₹1 Cr fine: Modi Govt set to ban online games played with money; bill likely in Parliament today

Prime Minister Narendra Modi-led Union government is all set to ban online games played with money. A proposed bill will be moved in the Lok Sabha today. If passed in Parliament, the move would strike a heavy blow to an industry that has attracted billions of dollars of foreign investment, according to news agency Reuters.

The Bill – ‘Promotion and Regulation of Online Gaming Bill 2025’ – cites psychological and financial harm which can be caused by such games and says that no person “shall offer, aid, abet, induce or otherwise indulge or engage in” the offering of online money games and such services. The ‘List of Government Business on August 20 and 21’ in the Lok Sabha includes the introduction of the bill.

Blanket ban on online real-money gaming

The proposed law, cleared by the Union Cabinet, would impose a blanket ban on all online real-money gaming services, where users can play games after depositing money in the form of a stake or a wager. According to reports, the move is owing to growing concerns about alleged money laundering through these services.

The 13-page bill drafted by the Union Ministry of Electronics and Information Technology (MeitY) describes an online money game as one played by a user who deposits money in expectation of winning monetary and other enrichment, the news agency said. Minister of Electronics and Information Technology Ashwini Vaishnaw is scheduled to move the Bill in Lok Sabha. 

The addictive nature of online games,

“The immersive and addictive nature of online games, particularly with monetary incentives, has led to significant mental health issues among users — especially children, adolescents and young adults,” the ministry said in the proposed law.

$3.6 billion by market 2029

“Clinical evidence and field studies have shown a rise in anxiety, depression, sleep disorders, and behavioural problems linked to prolonged gaming.”

The Indian market for such gaming is set to be worth $3.6 billion by 2029, venture capital firm Lumikai says.

Endorsements by celebrities from cricket, Bollywood, and other marketing efforts have boosted the appeal and investor interest of real money gaming apps.

In a letter to the Union Home Ministry this week, major gaming industry bodies said that the blanket ban would strike a ‘death knell’ for the legitimate, job-creating industry.

Three-year jail, ₹1 Cr Fine

The government will prohibit any person from offering online real-money games, and failing to comply will result in a prison term of up to three years and a penalty of ₹1 crore.

Those promoting such platforms, including social media influencers , could also face a prison term of two years and a penalty of ₹50 Lakh.

“Such games often use manipulative design features, addictive algorithms … while promoting compulsive behaviour leading to financial ruin,” the bill said.

The government, however, views competitive e-sports and game development as a crucial driver of the online gaming industry and is keen to promote them via the proposed law, the Indian Express said in a report.