Online Gaming Regulation Bill Passed in Lok Sabha: What Happens Next?

On August 20, 2025, the Indian Lok Sabha passed the Promotion and Regulation of Online Gaming Bill 2025, aiming to free over 450 million people in the country from the clutches of addictive online gaming. Once enacted into law, all money-based online gaming will be banned.

Currently, people are losing around ₹20,000 crore annually due to these games, leading to financial ruin, mental health issues, and even suicides. However, the government will encourage free-to-play e-sports and social games that foster skill development and leadership, especially among youth. To facilitate this, a regulatory authority will be created along with supportive schemes.

This law is being introduced after thousands of citizen complaints and requests from multiple states. However, the implementation will be the responsibility of individual states.

What Will Change Once the Law is Enforced?

After the law comes into effect, apps involving money-based gaming will no longer be downloadable from platforms like Google Play Store. Electronics & IT Minister Ashwini Vaishnaw stated that the goal is to protect society, prevent suicides, and not focus on revenue. He compared such gaming addiction to drug abuse. The government will promote two-thirds of the online gaming segment, including e-sports and social gaming, as they help develop cognitive and leadership skills.

Who Will Face Penalties?

Players participating in money-based games will not be punished. However, companies operating such platforms could face fines up to ₹1 crore and imprisonment up to three years. Celebrities promoting such games may face up to two years of jail time and a fine of ₹50 lakh. Payment gateway providers facilitating transactions for these games will also be liable for similar penalties.

The current gaming ecosystem will remain in place until the law is officially enacted. The government had been urging companies for years to curb betting-related activities, but no concrete action was taken. Hence, this bill was necessary.

Why Was This Necessary?

Some cricket-related online games have over 200 million players—more than India’s current number of stock market investors. Many of these users engage in betting through these gaming apps. In 2023, the government imposed a 28% GST on money-based online gaming. While banning such games might reduce government revenue, the focus is on societal wellbeing. The plan is to shift towards safer e-sports and social gaming, which can also generate jobs.

The online gaming industry in India is currently worth $3.8 billion.