Indian parliament introduces online gaming bill fearing national security threats

India’s Lower and Upper Houses have approved the Promotion and Regulation of Online Gaming Bill, 2025, just minutes after its introduction in the Lower House on August 20. The legislation provides a comprehensive legal framework for regulating online gaming companies across the country.

The government is now taking aim at the booming yet contentious real-money online gaming sector, with Indian media outlets reporting that it proposes sweeping bans and strict penalties for platforms and their celebrity endorsers.

Framed as a response to mounting concerns over national security and social harm, the bill marks a sharp departure from previous pro-industry measures. Central to the law are complete bans on money-based online games, multi-crore fines, and potential imprisonment, as authorities seek to rein in an industry increasingly accused of enabling money laundering, addiction, and legal loopholes—even as it races toward a projected $9 billion valuation by 2029.

The bill stems from security fears tied to online gaming platforms. These include risks of money laundering and illicit transfers through digital wallets and cryptocurrencies, use of platforms for terror group communications, and offshore entities evading Indian tax and legal frameworks.

It enforces a blanket ban on offering or promoting real-money online games like fantasy sports, poker, rummy, and lotteries. This prohibition also covers advertising, sponsorship deals, and related financial transactions, with banks and intermediaries barred from processing payments for such services.

Exceptions for e-sports and social games

While imposing strict measures on money-based gaming, the article notes that the bill excludes e-sports and online social or educational games from its purview. These segments will receive government backing: the Ministry of Youth Affairs and Sports will establish training academies and incentives, while the Ministry of Electronics and Information Technology will promote culturally and educationally aligned gaming content.

Additionally, the legislation proposes the creation of a national-level Online Gaming Authority to register and classify games, issue compliance guidelines, and handle grievance redressal.

By Nazrin Sadigova