Online Gambling Apps Face Complete Ban as Lok Sabha Passes Online Gaming Bill
Moneylife Digital Team 20 August 2025
Lok Sabha on Wednesday passed the Promotion and Regulation of Online Gaming Bill, 2025, which prohibits all forms of online games played with money, whether based on skill, chance or a mix of both while encouraging e-sports and positive social gaming. 
 
The law aims to strike a balance between fostering innovation in the digital gaming industry and protecting citizens, particularly the youth, from financial and social harm. It provides for a complete ban on money gaming platforms, advertisements promoting them and financial transactions linked to them. Banks and payment systems will be barred from processing payments associated with such applications.
 
Government officials say that online real-money gaming has become a major social concern, with widespread reports of addiction, debt, fraud and misuse of platforms for money laundering and terror financing. “Between revenue from one-third of the industry segment and society welfare, the government has chosen society welfare,” a senior official says.
 
Under the new framework, e-sports will be officially recognised as a competitive sport. The Union ministry of youth affairs and sports will establish training academies, research centres and technology platforms to support its growth, besides integrating e-sports into broader sports policy initiatives. The Bill also promotes online social and educational games that contribute to skill development, digital literacy and cultural awareness.
 
At the same time, the legislation prescribes strict penalties for violations. Offering or promoting money gaming platforms could result in up to three years’ imprisonment and fines of up to Rs1 crore. Repeat offenders and companies found guilty will face harsher punishments.
 
A national-level online gaming authority will also be established to regulate the sector. It will be tasked with categorising and registering games, determining whether they qualify as money games, issuing guidelines and handling grievances from the public.
 
 
Officials stressed that the new law is not only about regulation but also about creating opportunities. By promoting e-sports and safe social gaming, India aims to position itself as a global hub for game development and exports, while simultaneously safeguarding families from the psychological, financial and social harms linked to gambling and betting apps.
 
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