Online Gaming Bill 2025 passed in Lok Sabha: Ban on real money gaming; boost for esports

The Lok Sabha on Wednesday passed the Promotion and Regulation of Online Gaming Bill, 2025, amid protests by the Opposition. The legislation, which seeks to promote and regulate the online gaming sector, has drawn contrasting reactions — delighting the esports industry but sparking alarm in the multi-billion-dollar real money gaming market.Go Beyond The Boundary with our YouTube channel. SUBSCRIBE NOW!The House was adjourned till Thursday following noisy protests, while the Rajya Sabha was adjourned till tomorrow. Despite the disruption, the Bill went through, creating a landmark moment for one of India’s fastest-growing industries.The legislation proposes the creation of a central regulatory body to oversee four key segments: esports, educational games, social gaming, and real money gaming. Among these, real money gaming platforms — such as poker and fantasy sports — face the biggest blow.The Bill’s “Prohibitions” clause states: “No person shall offer, aid, abet, induce or otherwise indulge or engage in the offering of online money game and online money gaming service.” It further bans banks and financial institutions from processing transactions for such platforms.Under the “Offences and Penalties” clause, service providers found offering real money games could face up to three years’ imprisonment or fines of up to Rs 1 crore. Advertising such platforms could also invite jail terms of up to two years or fines of Rs 50 lakh.The government defended the move, citing widespread social and financial harms: “The proliferation of online money games…offering monetary returns against user deposits has led to serious social, financial, psychological and public health harms, particularly among young individuals and economically disadvantaged groups.”Implications for Indian SportCricket, which has seen a surge in real money gaming sponsorships, stands to be most affected. Dream11, India’s team sponsor, pays approximately Rs 358 crore, while My11Circle holds IPL fantasy rights worth Rs 625 crore over five years. Several leading cricketers also hold personal endorsement deals with these companies.Sports lawyer Vidushpat Singhania noted: “Cricket is huge in India and there won’t be any dearth of sponsors for Indian cricket. However, personal sponsorship market can shrink because of this bill. Fan engagement will also be affected.” He added that fantasy apps might shift to subscription-based models, though revenues will likely fall.Boost for EsportsFor the esports fraternity, however, the Bill is being hailed as a breakthrough. “The government’s intent to recognise and promote esports…is an encouraging step towards building a structured and globally competitive ecosystem,” Akshat Rathee, Co-founder and MD of NODWIN Gaming, told PTI.As esports prepares for its Olympic debut in 2027, the Bill could provide the sector with long-awaited legitimacy — marking a new era for gaming in India.