With the Union Cabinet giving nod to Online Gaming Bill, the Centre is hoping to put curbs on platforms involving real money. The bill, which is likely to be tabled in Parliament on Wednesday, is likely to bar platforms offering any online money gaming service, according to sources.
Once the bill is passed, banks and financial institutions will not process or transfer funds for real-money online games.
Why is Centre looking to ban money-based online games?
The bill has flagged mental health issues among online gamers, especially when monetary incentives gets involved. The government has also observed that money-based online gaming provides platforms for money laundering, fraudulent financial transactions and cyber crime.
The government is likely to introduce the Promotion & Regulation of Online Gaming Bill, 2025 in the Lok Sabha tomorrow. pic.twitter.com/u5hajozrp2
— Jay Sayta (@jnsayta) August 19, 2025
The Centre has already issued 1,524 orders to block online betting and gambling platforms, as of June 2025. There is also a 28 per cent GST on these platforms since October 2023.
It is believed that the bill might come with the provision to restrict promotion of online money gaming irrespective of whether they are based on skills or gambling.
Dream11, My11Circle, MPL, Winzo, GamesKraft, 99Games, KheloFantasy, Games24x7, Pokerbaazi, Rummy and Parimatch are among the platforms that could be affected by the move.
Punishment and fine
According to the Online Gaming Bill, an individual who offers online money gaming service could face three years imprisonment or a fine of up to ₹1 crore, or both. People who promote and advertise online money gaming could get up to two years jail time or a fine of up to Rs 50 lakh, or both.
A person who transfers or authorised online gaming funds could face up to three years imprisonment, or a fine up to ₹1 crore or both. Repeat violations involving online money gaming could lead to three to five years in jail along with a fine.
However, people playing online money games will be treated as victims and not perpetrators in a bid to avoid potential harassment and restrict punishment to those who promote and abet it.
Under Bhartiya Nyaya Samhita, unauthorised betting is already punishable with a seven-year imprisonment and fine.
