The Parliament has enacted the Promotion and Regulation of Online Gaming Bill, 2025, imposing strict regulations on money-based online gaming. The law bans such games and prescribes severe penalties, including imprisonment and hefty fines, for violators. It is aimed at companies, promoters, and individuals involved in prohibited activities, aiming to combat addiction and money laundering while promoting eSports and casual gaming.
On August 20, the Parliament passed the Promotion and Regulation of Online Gaming Bill, 2025, bringing into effect some of the toughest restrictions yet on money-based online gaming in India. The new law not only bans such games but also lays out stringent penalties, including hefty fines and prison terms, for companies, promoters, and individuals found guilty of such violations.
Piloted by Minister of Electronics and IT Ashwini Vaishnaw, the legislation cleared both Houses of Parliament and aims to address concerns of addiction, money laundering, and misleading advertising tied to online gaming. While it encourages eSports and casual gaming, the Bill makes it clear that any form of money-based online gaming will not be allowed henceforth.
Online Gaming Bill Passed; Hefty Fines, Jail For Real Money Gaming, Esports Industry Welcomed
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- For offering online money games: Any person who offers online money gaming services in violation of the provisions will face “imprisonment of up to three years, or a fine of up to Rs 1 crore, or both.”
- For misleading advertisements: The law also cracks down on advertisements that promote banned games. Anyone found guilty of publishing or endorsing such ads will face “imprisonment of up to two years, or a fine of up to Rs 50 lakh, or both.”
- Penalties for unauthorised transactions: Offenders engaged in unauthorised transactions may face “imprisonment of up to three years, or a fine of up to Rs 1 crore, or both.”
- Punishment for repeat offenders: Repeat violations will attract harsher penalties. The Bill specifies that anyone convicted under Section 5 or 7 who repeats the offence will face a minimum of three years in jail, extendable up to five years. The fine will not be less than Rs 1 crore and may go up to Rs 2 crore. For repeated offences under Section 6, which relates to advertisements, punishment will mean at least two years of imprisonment, extendable to three years, along with fines ranging from Rs 50 lakh to Rs 1 crore.
- Cognisable and non-bailable offences: Offences under Sections 5 and 7 are classified as cognisable and non-bailable under the Bharatiya Nagarik Suraksha Sanhita, 2023. This empowers the police to register cases, seize assets, and arrest without prior approval. Bail, in such cases, will also not be easily available.
- Liability of companies and Directors:If a company is found guilty, the law holds both the company and those in charge of operations accountable. Directors, managers, or officers who knowingly allowed violations will face full punishment. Independent or non-executive directors, are protected if they were not involved in day-to-day decisions.
- Penalty for non-compliance with Government orders: Failure to comply with government or regulatory orders will invite a penalty of up to Rs 10 lakh. Additional punishments may include suspension or cancellation of registration and a temporary ban on offering or promoting online games.
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With fines ranging up to Rs 2 crore and jail terms of as long as five years, the Online Gaming Bill 2025 signals one of the toughest crackdowns yet on the sector, targeting both individuals and companies involved in money-based gaming.
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