New Bill Aims to Ban Online Gaming in India
The Indian government, under the leadership of Prime Minister Narendra Modi, has taken a significant step towards regulating online gaming by approving the Promotion and Regulation of Online Gaming Bill 2025, which aims to introduce the country's first national law on real-money online gaming.
LISTEN TO THIS ARTICLE:By introducing a uniform legal framework, the government wants to tackle the pressing issues of gambling addiction, fraud, and regulatory inconsistencies across states. However, the provisions of the bill lean towards a complete ban on online real-money games rather than regulating the industry.
The proposed legislation defines online money games as those that involve monetary deposits or stakes with the potential for winning cash or rewards. Under the law, it would be illegal to operate, facilitate, advertise, or endorse these games, or handle financial transactions linked to them.
Individuals found guilty may be sentenced to up to three years in prison or fined up to RS 1 crore (US$120,000), while repeat offenders could face penalties of up to five years' imprisonment. Additionally, promoters and advertisers may face two years' imprisonment and a fine of up to RS 50 lakh.
The measure also provides for a gambling authority that will determine whether a game is classified as an online money game and conduct thorough assessments to provide clarity for operators, users, and law enforcement agencies.
Following its approval by the Union Cabinet, the bill is now headed to the Parliament for consideration and passage.
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The Push for a Central Law
India's bid to regulate online gambling with a nationwide law has been long overdue. In February 2025, the Ministry of Home Affairs (MHA) began discussions on the need for a central law to oversee online gaming, gambling, betting, and lotteries.
The ministry held a meeting which included representatives from several agencies, including the Intelligence Bureau, and the Indian Cyber Crime Coordination Centre (I4C).
Currently, gambling regulations in India are governed by individual states. While a ban on online gambling would align with the policies of most of these jurisdictions, regions like Nagaland and Sikkim allow online gaming. Experts suggest that a blanket ban on online gambling would push more people towards black market operators and underground gaming platforms.
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