The Government of India passed the Promotion and Regulation of Online Gaming Bill, 2025, swiftly through Parliament. The law aims to ban real money games (RMGs) to curb social harm. It now awaits the President’s signature to become an Act. This marks a decisive move away from previous self-regulation attempts in the sector.
Recent Legislative Action
On 21 August 2025, the Rajya Sabha passed the Bill clause-by-clause. The Union Cabinet and Lok Sabha had earlier cleared it within 72 hours. Despite opposition protests and allegations of vote theft, the Bill was approved without amendments. The law targets platforms allowing users to deposit money and risk losses in online games.
Key Provisions of the Bill
The Bill bans firms such as Dream11 and MPL from accepting user deposits for games involving financial risk. It classifies these as online money games and prohibits their operation in India. The government emphasises strict enforcement without delay or consultations, unlike prior IT laws which took months to finalise.
Government’s Rationale
Union Minister Ashwini Vaishnaw brought into light the social damage caused by real money gaming. He cited cases where families were destroyed due to gambling losses. The government views the ban as a necessary step to combat malpractices similar to chit funds. The prohibition is intended to protect citizens from financial harm.
Impact on the Online Gaming Industry
The new Act disrupts the growing RMG market in India. Industry players have yet to respond publicly but have sought relief from Home Minister Amit Shah. The ban will force companies to alter business models or exit the segment. Meanwhile, the government plans to promote e-sports through the Ministries of Youth Affairs and Sports and Information and Broadcasting.
Enforcement and Future Steps
A short notification will bring the law into force immediately after presidential assent. Unlike the Digital Personal Data Protection Act, 2023, this law requires no prolonged stakeholder consultations. Enforcement agencies are expected to act swiftly to ensure compliance and prevent malpractices linked to online money games.
Broader Context of Online Regulation
This legislation reflects India’s increasing regulatory focus on digital platforms. It contrasts with prior softer approaches relying on self-regulation or industry cooperation. The move signals a shift towards prohibition to address emerging social and economic risks from unregulated online activities.
Questions for UPSC:
- Critically discuss the challenges of regulating emerging digital sectors like online gaming in India and the role of legislation in addressing these challenges.
- Examine the social and economic impacts of gambling bans in India. How do such bans affect stakeholders including players, industry, and government?
- Analyse the balance between promoting digital innovation and ensuring consumer protection in India’s IT policy framework.
- Estimate the potential effects of sudden regulatory prohibitions on industries and suggest measures to mitigate negative economic impacts.
