New Online Gaming Bill in India A complete Ban on Real Money Gaming

The Indian Government has published The Promotion and Regulation of Online Gaming Bill, 2025, a radical break from the earlier IT Intermediary Rules, 2023. The Bill, which was hustled through the Lok Sabha, seeks a complete ban on every form of real money gaming, putting in perils the future for home-grown startups and foreign investment in the industry.

The Bill’s Main Provisions

The Bill explicitly prohibits:

• Offering, organizing or assisting in online games of money.
• Advertising or marketing of games of such nature.
• Any payment, advance of money, or other consideration made or contracted for with a view or on the condition of receiving a financial return

It is aimed at games that cross state lines or are based in foreign countries and prohibits banks from processing the transactions to pay winners. There will be created a games regulator to rate and enforce the requirements.

Strict Penalties for Violations

The Bill prescribes severe punishments:

• Operating  banned games: jail up to 3 years and fines up to 1 crore.
• Advertizing  such services: up to 2 years in jail and fine of 50 lakhs.
• Company owners and those in charge can also be made responsible.

The Impact on Industry and Economy

While seeking to counter addiction, debt and fraud, the ban may:

• Crippling Indian start-ups that have earned it legally, courtesy of tax and employment.
• Encouraging users to head to unregulated offshore sites, where security risks are higher.
• Resulting in an estimated loss of 20,000 crore in tax revenue and a 6,000 crore allied sector (advertising, infrastructure, etc.) getting disrupted.

Industry Response and Alternatives

Industry organizations have promoted responsible gaming in the context of self-regulation, including:

• Compulsory age verification and spending limits.
• Self-exclusion mechanisms and educational services for the players.
• They call on the government to take a measured, targeted approach and not a broad ban.

What’s Next?

The Bill is yet to pass through the Rajya Sabha. It is potentially subject to legal problems because courts have annulled state-level prohibitions of real money games. The financial sector in the country could also take a new shape depending on how a pending Supreme Court ruling on applicability of GST turns out. Changes regarding user safety - instead of banning them entirely, changes that prevent them would still be catered to, as to allow innovation until some truly bothersome issue is introduced.