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The government has moved a legislation in the Lok Sabha to ban online games played with money as it looks to check rising instances of addiction, money laundering, and financial frauds through such applications.
The Promotion and Regulation of Online Gaming Bill, 2025 also seeks to prohibit advertisement related to online money games as well as bars banks and financial institutions from facilitating or transferring funds for any of such games.
Online money game is one played by a user by depositing money in expectation of winning monetary and other enrichment.
Union Minister Ashwini Vaishnaw introduced the bill in the Lok Sabha amid sloganeering by MPs belonging to opposition parties in protest against alleged irregularities in electoral roll revision in Bihar.
The bill outlaws all online betting and gambling (satta and jua) activities — from online fantasy sports to online gambling (like Poker, Rummy and other Card games) and online lotteries.
Once the legislation is passed by both Houses of Parliament, offering or facilitating online money gaming will be punishable by imprisonment of up to 3 years and/or fine up to Rs 1 crore.
Advertising of money games can attract imprisonment up to two years and/or fine up to Rs 50 lakh. Facilitating financial transactions related to money games can lead to imprisonment up to three years and/or fine up to Rs 1 crore.
Repeat offences attract enhanced penalties, including 3-5 years’ imprisonment and fines up to Rs 2 crore.
Importantly, offences under key sections are sought to be made cognizable and non-bailable.
Endorsements by top cricketers and film stars have incited interest in real money gaming apps such as fantasy sports betting games offered by Dream11, Games24X7, and Mobile Premier League.
A senior government source said the bill has been brought as there is a realisation that online real money gaming has become a major problem for society. The government decided to keep the welfare of people above revenue loss from its ban.
Industry bodies representing real money game players — India Gaming Federation (AIGF), the E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS) in a letter to Home Minister Amit Shah raised concerns over the bill saying the online skill gaming industry is a sunrise sector with an enterprise valuation of over Rs 2 lakh crore and annual revenue exceeding Rs 31,000 crore.
It contributes over Rs 20,000 crore in direct and indirect taxes annually and is projected to grow at a 20 per cent compound annual growth rate (CAGR), doubling by 2028, the industry bodies said.
