India’s Union Cabinet has approved the Promotion and Regulation of Online Gaming Bill, 2025, which is expected to be introduced in the Lok Sabha today, Wednesday, August 20, 2025 . The legislation will be tabled by Electronics and Information Technology Minister Ashwini Vaishnaw .
The Bill mandates the establishment of a central regulatory authority to provide policy support, strategic development, and oversight for the online gaming industry.
The proposed legislation seeks to prohibit the offering, operation, facilitation, advertisement, and promotion of online money games, particularly those operating across state borders or from foreign jurisdictions .
Penalties include imprisonment of up to three years and fines up to ₹1 crore for violators. Advertisement of money games may lead to imprisonment of up to two years and fines up to ₹50 lakh, with repeat offences attracting harsher sanctions .
Financial institutions will be barred from processing funds for real-money games . Ads, including influencer and celebrity endorsements, will be prohibited and treated as cognizable, non-bailable offences .
While real-money games face prohibition, the Bill encourages e-sports, educational, and social gaming, including support for training academies, research centres, and age-appropriate content .
The Bill aims to:
Protect youth and vulnerable groups from social, economic, psychological, and privacy-related harms .
Safeguard public order, financial systems, and national security .
Establish a uniform national legal framework, addressing inconsistencies among state laws.
Counter fraudulent marketing practices and celebrity endorsements of money-gaming apps.
The All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and Federation of India Fantasy Sports (FIFS) have jointly written to Union Home Minister Amit Shah, urging reconsideration of any blanket ban .
They argue that prohibiting real-money games would:
Undermine a ₹2 lakh crore online skill-gaming industry.
Jeopardise ₹31,000 crore in annual revenue and over ₹20,000 crore in tax contributions.
Threaten over 2 lakh jobs and ₹25,000 crore in FDI (till mid-2022).
Reverse growth of over 20% CAGR, with the sector projected to double by 2028.
Leave India’s 50 crore gamers (up from 36 crore in 2020) underserved .
They warn that a blanket ban could redirect users offshore, costing the exchequer nearly ₹20,000 crore annually and harming legitimate businesses. They advocate for progressive regulation over outright prohibition.
Following Cabinet approval, shares of key gaming firms such as Nazara Technologies and Delta Corp dropped up to 7%, reflecting investor concerns about tighter regulation and its impact on the industry .
With the Promotion and Regulation of Online Gaming Bill, 2025 scheduled for introduction in the Lok Sabha today (August 20, 2025), India finds itself at a decisive policy crossroads. On one hand, the government seeks to protect vulnerable groups, maintain financial integrity, and curb risks associated with online money gaming, betting, and wagering.
On the other, the online gaming sector has rapidly evolved into a sunrise industry—contributing billions in revenue, creating jobs, attracting foreign investment, and driving digital innovation. Striking the right balance between regulation and growth will be critical.
The Bill may undergo further scrutiny in a parliamentary committee, where stakeholders could push for amendments that ensure consumer safety without stifling legitimate business activity. Whether India opts for progressive regulation or stricter prohibition, the outcome will shape not only the country’s gaming ecosystem but also its ambition to be a global leader in digital entertainment and technology.