The government of India has imposed a complete restriction on online money games. It also banned advertisements related to the sector. This followed the passage of the Promotion and Regulation of Online Gaming Bill 2025 on August 21.
The Information Technology Act of 2000, passed by parliament, states that any financial transactions connected to these platforms are unlawful. The legislation targets to establish a national-level regulatory authority that will govern the categorizing and registration of online games.
The authority must issue guidelines, codes of practice, and directions for compliance. Violations can lead to imprisonment of up to three years and a fine of one crore rupees (about USD 114,017).
With imprisonment up to two years and a fine of up to fifty lakh rupees 1140 USD, the advertisement of the said games is also punishable with similar penalties.
India recognizes e-sports as a legitimate competitive sport. However, the law restricts online money games such as poker, rummy, and fantasy sports that offer cash rewards. The ban does not cover online social or casual games that are recreational in nature.
The bill-turned-law takes a balanced approach by recognizing that the online gaming sector is one of the most dynamic segments of the digital and creative economy. Consequently, it still allows e-sports and online social games to operate.
According to Union Minister for Electronics and Information Technology, Shri Ashwini Vaishnaw, this came after the report of over 45 crore or 45,000,000 people were reportedly affected by online money games and have lost more than Rs. 20,000 or 2,280.414 USD.
According to the ministry, specific reasons drove the total ban. These reasons are Addiction and Financial Ruin, Mental Health and Suicide, Fraud and Money Laundering, Threat to National Security, Closing Legal Loopholes, Encouraging Healthy Alternatives.
