New Delhi, August 21, 2025 : In a landmark legislative move, India’s Parliament has passed a bill that bans online money games involving monetary stakes, significantly impacting the booming fantasy gaming and real-money gaming industry.
The Promotion and Regulation of Online Gaming Bill, 2025 was approved in the Rajya Sabha on Thursday through a voice vote, a day after securing clearance in the Lok Sabha. Once signed by the President, a step seen largely as procedural, the bill will become law.
The legislation prohibits the operation, promotion, facilitation, and advertisement of online games played for money. It also empowers authorities to block related financial transactions and enforces strict penalties for violations, including prison sentences of up to three years and fines reaching ₹1 crore.
No More Online Money Games: Parliament Passes Online Ban
The bill’s sudden passage has rattled the gaming sector, which was projected to grow to $3.6 billion by 2029, attracting billions in venture capital. Major players like Dream11, Mobile Premier League, Zupee, and Games 24X7 are now staring down the possibility of suspension or shutdown.
Dream11 alone carries a valuation of $8 billion, while MPL is valued at $2.5 billion, according to PitchBook. Backers include major investors like Tiger Global and Peak XV Partners.
The move has raised alarm across startups and investors, many of whom expressed concerns about job losses and halted operations.
Government’s Justification
Presenting the bill in the Rajya Sabha, IT Minister Ashwini Vaishnaw likened money gaming addiction to drug dependence, calling it a public threat.
“The addiction to money-based online games is as harmful as narcotics. We’ve seen how this money is being channeled to fund illegal activities, even terrorism,” Vaishnaw said.
He also acknowledged that powerful industry stakeholders of Online Money Games may challenge the decision legally and attempt to influence public opinion through social media.
What’s Banned?
The bill defines “online money games” as those involving deposits made in the hope of monetary returns. This includes:
- Online fantasy sports
- Real-money gaming (poker, rummy, and other card games)
- Online lotteries
- Any form of online gambling or betting (satta or jua)
The bill criminalizes not just gameplay but associated advertisements and transactions. Advertising these games can lead to up to 2 years in jail and/or a ₹50 lakh fine, while facilitating financial transfers for them could attract up to 3 years in jail and/or a ₹1 crore fine.
Repeat violations carry stricter penalties, including 5-year jail terms and fines up to ₹2 crore.
Heated Parliament Session
The bill passed amid high drama and protests from Opposition members, who argued that the legislation was rushed through without adequate debate.
Opposition Leader Mallikarjun Kharge criticized the process, while Union Minister Kiren Rijiju countered that a discussion was impossible due to the continuous disruptions in the House.
Going forward
The President’s assent is awaited, but is largely considered a formality. Once enacted, the ban could come into force almost immediately, sending shockwaves through one of India’s fastest-growing digital industries.
While the government maintains the move is aimed at curbing addiction and financial exploitation, the industry and its investors are bracing for potential legal battles, and a drastically altered future.
