Parliament Clears Bill To Prohibit Online Money Games

Within a day of Lok Sabha passing, the Rajya Sabha cleared today The Promotion and Regulation of Online Gaming Bill, 2025, which seeks to prohibit 'online money games' and offering of bank services, advertisements, etc. related thereto.

Union Minister of Electronics and Information Technology Ashwini Vaishnaw placed the Bill before Rajya Sabha for consideration and passing. In his address, he mentioned that the Bill seeks to promote 2/3rd segment of the online gaming industry and seeks to prohibit only 1 segment pertaining to online money games.

According to an estimate, 45 crore people have been adversely affected by online money games and loss of over 20000 crores incurred by middle-income families, he claimed.

Vaishnaw also highlighted that online money gaming has been declared as a 'gaming disorder' by the World Health Organization, stressed that it has become a significant public health risk and said that self-regulation measures have proved to be ineffective. The Union Minister further drew links between online money gaming activities and offenses of money laundering & terror support.

He also condemned the Opposition for abstaining from discussion on the Bill and instead sloganeering with regard to its 'Vote Chori' allegations against the BJP government.

MP John Brittas, and others, moved a motion for amendment, seeking reference of the Bill to a Select Committee. However, on voting, the same was negated and the Bill passed by voice vote.

What does the Bill say?

The Bill 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 e-sports".

As per Section 2(h), 'online money gaming service' shall mean a service offered by a person for entering or playing the online money game. Any person who extends such service in contravention of the proposed law shall be punishable with upto 3 years imprisonment, or upto Rs.1 crore fine, or both. A person who engages in advertisement thereof shall be punishable with imprisonment upto 2 years, or fine upto Rs.50 lakhs, or with both.

The Bill also provides for establishment of an Authority by the Central government, which can be vested with the authority to suo-motu consider whether any online game constitutes an online money game. It allows the government to endow vast investigative powers on authorized officers, that would include arrest and search of property, without warrant, if there's 'reasonable suspicion' of offense being committed/about to be committed.

Notably, the proposed law shall apply not only to online money gaming services offered within the territory of India, but also to those operated from outside India.

While the Bill prohibits 'online money games', it excludes from the scope of prohibition 'e-sports' which may be recognized and promoted by the Central government, as deemed appropriate, as a legitimate form of sports in India. Alongwith e-sports, the government may also consider promoting and recognizing 'online social games' for educational and recreational purposes, which may include a subscription fee for entry but nothing in the nature of a wager/betting.

The e-sports' outcome should depend solely by factors like physical dexterity, mental agility, strategic thinking or other similar skills of players. They may include payment of fees solely for entering the competition or covering administrative costs. However, they shall not involve "placing of bets, wagers or any other stakes by any person, whether or not such person is a participant, including any winning out of such bets, wagers or any other stakes."

In the Statement of Object and Reasons of the Bill, it is stated that "the unchecked and widespread proliferation of online money games which readily accessible through mobile devices, computers, and the internet, and offering monetary returns in exchange for deposited funds has led to grave social, economic, and psychological consequences across the country".

"These platforms often promote compulsive and addictive behaviour, resulting in financial ruin, mental health disorders, and increasing incidents of fraud and exploitation", the Bill states, while highlighting the adverse impact of such games on young and economically vulnerable people, especially in the backdrop of celebrity endorsements.

Underlining the need for a robust legal framework, the Bill adds that the proposed law seeks to regulate, promote and encourage the gaming sector for innovation and economic growth, while ensuring a developed, safe and responsible digital environment for all citizens.