What is the impact of Online Gaming Bill 2025 in India?

Published - 22 Aug 2025, 16:00 IST | Updated - 22 Aug 2025, 16:01 IST

The Parliament of India has cleared the Promotion and Regulation of Online Gaming Bill, 2025, introducing reforms that will ban real-money online games while formally recognising esports as a legitimate sport.

The bill, aimed at addressing concerns over gambling addiction, money laundering, financial frauds, and national security risks, is set to significantly reshape India’s $3.7 billion gaming industry, which has drawn global investors and nurtured popular fantasy sports platforms like Dream11, Games24x7, and MPL.

The Lok Sabha passed the bill on August 20, followed by the Rajya Sabha on August 21. With Presidential assent pending, the legislation will soon become law, effectively prohibiting online games that require users to pay money to win cash rewards.

“The government believes that the harms of addiction, financial loss and even extreme consequences such as suicides associated with online money gaming can be prevented by prevention of such activities,” a media statement released by the government read.

“Additionally, online money gaming platforms are often misused for financial fraud, money laundering, terror financing and messaging activity that compromise national security,” it added.

Speaking on the legislation, BCCI secretary Devajit Saikia clarified the board's stance, stating the cricketing body will abide by all rules and regulations and "will not do anything which is not permitted".

The act has just been discussed in the Lok Sabha today and the Rajya Sabha yesterday. It would then take a final shape, go through Presidential assent, and then there will be a 'date of appointment.' We will then read it, and then only we will take a call on whatever is there. The BCCI will not do anything which is not permitted by the government or by any law of the country. The BCCI will not violate any of the laws enforced in the country. That's very clear," Saikia was quoted as saying by TOI.

"Once the act comes into force, we will look into it, examine it and if it's permissible, then we will take sponsorship (from online betting and gaming companies), if it's not permissible, we'll not do anything. Take the example of cigarettes and liquor. Has the BCCI taken any sponsorship from the cigarettes and liquor companies once taking sponsorship from these kinds of companies was banned? So, whatever is permissible in the laws in force in our country, we will do that only. The BCCI will follow every policy of the country which is framed by the central government," he added.

Esports will now be recognised as a legitimate sport, with the Sports Ministry tasked to frame guidelines, support training academies, research centres, and technology platforms, while also rolling out incentive schemes and awareness drives. This move is expected to unlock infrastructure investment, talent pipelines, broadcast rights, and brand sponsorships, bringing esports closer to mainstream sports economics.

The government will have the authority to recognise, categorise, and register online social and educational games. A strong emphasis will be placed on age-appropriate, culturally aligned, and value-based content, supporting the development and distribution of games that serve educational and social purposes.

The bill proposes a complete ban on offering, operating, or facilitating online money games, regardless of the format. Such games cannot be advertised or promoted on any media platform, while banks and financial institutions are prohibited from processing related transactions. Existing platforms will be blocked under provisions of the Information Technology Act, 2000.

A new national online gaming authority will be established to categorise and register games, determine whether it qualifies as a money game, and address complaints and grievances. The body will also issue guidelines, codes of practice, and compliance orders to ensure orderly regulation of the sector.

The legislation prescribes strict penalties, offenders could face up to three years of imprisonment and/or a fine of INR 1 crore. Advertising such games may result in a penalty of INR 50 lakh or up to two years in jail. Financial transactions linked to money games will attract similar punishment. Repeat offences carry harsher consequences, with imprisonment between three to five years and fines of up to INR 2 crore.

India’s online gaming sector, valued at a whopping USD 3.7 billion in 2025 as per WinZO–IEIC report, supported by FICCI-EY, has been disrupted ever since the bill was tabled in the parliament, since nearly 86% of the sector’s revenue originates from real-money and transaction-based games.

The proposed bill will affect platforms like Dream11, My11Circle, PokerBaazi, Rummy Circle, Winzo, GamesKraft, 99Games and KheloFantasy amongst others quite significantly as a lion’s share of the revenue for these platforms was generated from real-money gaming formats.