A bill seeking to prohibit and regulate online gaming was introduced in the Lok Sabha on Wednesday. The Promotion and Regulation of Online Gaming Bill, 2025 proposes that any person offering an online money gaming service in violation of the stipulated provisions will face imprisonment of up to three years or a fine that may extend to Rs 1 crore, or both.
India embraces the positive power of gaming! 🇮🇳
— Ministry of Information and Broadcasting (@MIB_India) August 20, 2025
The Online Gaming Bill, 2025 aims to boost eSports and social gaming — while taking a firm stand against harmful money gaming practices.
A bold move for a safer, smarter gaming future! pic.twitter.com/mzmnCOK4Lq
The provisions also stipulate imprisonment of up to two years and/or a fine of up to Rs 50 lakh, or both, for those indulging in advertisements in contravention of the rules. Additionally, those engaging in any transaction or authorisation of funds will be liable for up to three years' imprisonment, a fine of up to Rs 1 crore, or both, according to the source.
If passed, the bill could affect around four lakh companies and 2 lakh jobs. Gaming executives have expressed their concern, saying that the ban could be the death of the gaming industry. They say that they may have to shut down operations and may not have a clear path for earning revenue if the law is passed. However, not every online game is going to be affected by the bill. Here are five things to know about the Promotion and Regulation of Online Gaming Bill, 2025:
1. A bill seeking to prohibit and regulate online gaming was introduced in the Lok Sabha on Wednesday. The Promotion and Regulation of Online Gaming Bill, 2025 proposes that any person offering an online money gaming service in violation of the stipulated provisions will face imprisonment of up to three years or a fine that may extend to Rs 1 crore, or both.
2. Dream11 and My11 Circle are all at risk as the bill proposes a blanket ban on games where users stake money to win cash prizes, regardless of whether they are based on skill or chance.
The Online Gaming Bill | No punishment for those playing online games. No punishment to victims. Only punishment for service providers, advertisers, promoters and those who support financially to such games: Sources
— ANI (@ANI) August 20, 2025
3. The bill also wants to set up a National Online Gaming Commission (NOGC) to oversee licensing, classify game types, enforce compliance, and promote e-sports. The government is distinguishing competitive e-sports from gambling-based platforms. E-sports is to be encouraged and regulated while the other is to be banned. According to news agency PTI, it acknowledges that formal recognition of e-sports will enable India to tune into the global competitive gaming landscape, spur innovation, create opportunities for the Indian start-up ecosystem, and make the country a global magnet for game development. Real Cricket, EA Sport FC, and Free Fire are the games falling under the former category while Dream11, My11 Circle, MPL, Winzo, GamesKraft, 99Games, and the like are likely to face consequences.
4. Popular online mobile games like BGMI and Free Fire, which fall under the battle royale category, are not expected to be banned by the new bill. This is because they are considered e-sports, which means players compete based on skill instead of gambling for cash winnings. The revenue of battle royale games comes from cosmetic purchases (skins, patches, designs) and not real-money betting. According to reports, the new bill does not target cosmetic or in-game spending that is not tied to monetary gains. Thus, while the bill explicitly targets games like fantasy sports, rummy, and poker with a business model based on real-money betting and gambling, battle royale games are relatively safe.
5. The All India Gaming Federation (AIGF), the E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS) have written to Union Home Minister Amit Shah, asking for urgent intervention on the proposed bill. AIGF argued that if the bill is passed, crores of genuine gamers could be affected and would have to resort to illegal sites and gambling networks run by unregulated operators. “The bill, if enacted, will cause serious harm and drive players into the hands of fly-by-night operators,” the federation said.
