The government of India has imposed a complete restriction on online money games. It also banned advertisements related to the sector. This follows the passage of the Promotion and Regulation of Online Gaming Bill 2025 on August 21.
The Parliament passed the Information Technology Act of 2000, which declares any financial transactions related to these platforms unlawful. The legislation also targets to build a national-level regulatory authority that will govern the categorizing and registration of online games.
The authority shall issue guidelines, codes of practice, and directions for compliance. Violations can lead to strict punishments, including imprisonment for 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 1,140 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 total ban does not cover online social or casual games that are recreational in nature.
The bill-turned-law takes a balanced approach. It recognizes that the online gaming sector is one of the most dynamic segments in the digital and creative economy. In consequence, letting esports and online social games.
Shri Ashwini Vaishnaw, Union Minister for Electronics and Information Technology, stated that reports showed online money games affected over 45 crore (45,000,000) people. These individuals lost more than ₹20,000 crores (about USD 2,280.41).
According to the ministry, the following reasons drove the total ban. First is Addiction and Financial Ruin, Mental Health and Suicide, Fraud and Money Laundering, Threat to National Security, Closing Legal Loopholes, Encouraging Healthy Awareness.
