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India Gaming Bill: Real‑Money Games Banned, Esports Recognized

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Regulation

6Days ago

India introduced the Promotion and Regulation of Online Gaming Bill, 2025, in the House of the People (Lok Sabha) on Wednesday after approval from the Union Cabinet on 19 August 2025, presented by Minister of Electronics and Information Technology Ashwini

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Key provisions of the bill


The Bill reviewed by SiGMA News defines ‘online money game’ as “an online game, irrespective of whether such game is based on skill, chance, or both, played by a user by paying fees, depositing money or other stakes in expectation of winning which entails monetary and other enrichment in return of money or other stakes; but shall not include any esports”.


The legislation prohibits the offering or advertising of online money gaming. Violators face imprisonment of up to three years, a fine of up to $1.1 million, or both. Those who advertise such services may be penalised with up to two years in prison, a fine of up to $60,000, or both.


 Further, anyone facilitating financial transactions for banned gaming services can be jailed for up to three years or fined up to $1.1 million, or both. At the same time, the bill promotes esports and online social games.


Industry reaction


Rohit N Jagasia, Co founder and CEO of Revenant Esports, said the bill provides much-needed clarity for the sector. In an exclusive conversation with SiGMA News, he explained, “The Promotion and Regulation of Online Gaming Bill, 2025 is a welcome step toward resolving years of uncertainty in the sector. At present, a mix of state-level restrictions creates inconsistency. This bill helps bring a balance to that. With a central framework in place, we can unlock investment, foster innovation, and drive global competitiveness.”


He further highlighted the distinction the bill makes between esports, social gaming and chance-based money games. “For esports in particular, that clarity is essential for growth and credibility. Once the detailed provisions are made public, we’ll have a clearer sense of its implications for esports. But it could well mark the start of India’s rise as an international esports leader,” Jagasia added.


Healthcare leaders have also expressed support. Preetha Reddy, Vice Chairperson of Apollo Hospitals, said on X (formally twitter), “The new Online Gaming Bill is more than regulation, it is protection. Online money games have left children and youth vulnerable to exploitation and serious mental health risks. This step puts wellbeing first, ensuring our future generations grow with balance and dignity.”


Key provisions of the bill


The Bill reviewed by SiGMA News defines ‘online money game’ as “an online game, irrespective of whether such game is based on skill, chance, or both, played by a user by paying fees, depositing money or other stakes in expectation of winning which entails monetary and other enrichment in return of money or other stakes; but shall not include any esports”.


The legislation prohibits the offering or advertising of online money gaming. Violators face imprisonment of up to three years, a fine of up to $1.1 million, or both. Those who advertise such services may be penalised with up to two years in prison, a fine of up to $60,000, or both. Further, anyone facilitating financial transactions for banned gaming services can be jailed for up to three years or fined up to $1.1 million, or both. At the same time, the bill promotes esports and online social games.


Industry reaction


Rohit N Jagasia, Co founder and CEO of Revenant Esports, said the bill provides much-needed clarity for the sector. In an exclusive conversation with SiGMA News, he explained, “The Promotion and Regulation of Online Gaming Bill, 2025 is a welcome step toward resolving years of uncertainty in the sector. At present, a mix of state-level restrictions creates inconsistency. This bill helps bring a balance to that. With a central framework in place, we can unlock investment, foster innovation, and drive global competitiveness.”


He further highlighted the distinction the bill makes between esports, social gaming and chance-based money games. “For esports in particular, that clarity is essential for growth and credibility. Once the detailed provisions are made public, we’ll have a clearer sense of its implications for esports. But it could well mark the start of India’s rise as an international esports leader,” Jagasia added.


Healthcare leaders have also expressed support. Preetha Reddy, Vice Chairperson of Apollo Hospitals, said on X (formally twitter), “The new Online Gaming Bill is more than regulation, it is protection. Online money games have left children and youth vulnerable to exploitation and serious mental health risks. This step puts wellbeing first, ensuring our future generations grow with balance and dignity.”


Kharge added, “Wiping out this sector will not solve the problem, it will only drive over 40 crore users in our country to illegal offshore betting platforms. We’ve seen this play out before where prohibition failed and underground markets flourished.


The fallout won’t stop at lost users. A ban risks writing off more $3.01 billion in FDI, losing $1.2 billion in annual industry spends across ads, marketing, consulting and services and forcing over 400 companies to shut down.”


Kharge emphasised on the need of rational regulatory framework that protects users and national security while allowing legitimate skill-based gaming to thrive. “Banning games of skill under the guise of controlling gambling will hurt innovation, jobs and investment. We should be building guardrails, not burning down an entire sunrise sector,” he added.


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