India Moves to Ban Real Money Games With Sweeping New Bill

India has taken a dramatic step toward outlawing real money games, introducing legislation that has already rattled the online gaming sector even as it awaits the president’s approval for enforcement. The Promotion and Regulation of Online Gaming Bill, 2025, imposes what it describes as a “complete ban on online money games,” further specifying that “advertising and promotion of such games is strictly prohibited. Financial transactions related to these platforms cannot be processed by banks or payment systems.” Any platforms deemed unlawful can also be blocked under the proposed law.

The bill provides for the creation of a national-level online gaming authority, or the designation of an existing one, tasked with “categorizing and registering online games, deciding whether a game qualifies as a money game, and addressing public grievances.” This oversight body is intended to bring structure and clarity to a sector that the government says has long operated in a legal gray area.

Penalties under the new legislation are severe. Offering or facilitating online money games could carry prison terms of up to three years and fines as high as RS10 million ($114,000). Financial transactions “linked to these games are also punishable with similar penalties,” while advertising such platforms could result in up to two years in jail and fines of RS5 million ($57,200). Repeat offenders would face even harsher consequences, including as much as five years in jail and fines of up to RS20 million ($228,700). Enforcement powers are extensive, with the bill explicitly stating that “police can arrest without a warrant and bail is not a right.”

While companies and their officers are liable for violations, there is an exemption for independent and non-executive directors, who, if they demonstrate that they acted “with due diligence,” would not be held accountable for offenses. The bill also allows authorities “in certain cases” to enter premises and make arrests without a warrant, with authorized officers given the ability to “investigate, search and seize both digital and physical property linked to offenses.”

The Government of India’s Press Information Bureau issued an extensive explanation of the legislation, noting that although its aim is to eliminate real money gaming, the bill is also designed to foster the growth of e-sports and social gaming. Among the government’s stated motivations are six key points. It seeks to address “addiction and financial ruin,” warning that “compulsive play” has led players to “lose their entire savings chasing the illusion of quick profits.” On mental health, it states that “the bill seeks to prevent such tragedies by banning these exploitative platforms.” Fraud and money laundering are also cited, as officials argue platforms have been “misused for illegal activities.” National security is another justification, with the government asserting that “some gaming platforms were being used for terror financing and illegal messaging.” The bill also claims to close legal loopholes, ensuring “the same standards apply in both physical and digital spaces,” while promoting healthier alternatives, promising that “e-sports will be promoted as a legitimate sort […] while social and educational games that build skills and cultural values will receive government support.”

Under the legislation, online money games are defined as “games where financial stakes are involved, whether based on chance, skill, or a combination of both.” Official figures cited in the bill claim that some 450 million people in India are “negatively affected by online money games” and have “faced a loss of more than” RS200 billion. It further highlights that “there is a lack of coherent and enabling legal framework that can promote structure growth of the sector and allow responsible gaming practices to evolve.” Another challenge, according to the text, is the prevalence of platforms operating from offshore jurisdictions, which “presents challenges in terms of extra-territorial jurisdiction and inter-state inconsistencies.”

In its public statement, the government stressed that “The Promotion and Regulation of Online Gaming Bill, 2025, marks a decisive step in India’s digital journey. It recognizes the dangers of unregulated money gaming and responds with firm safeguards to protect citizens. At the same time, it carves out space for e-sports and educational games that nurture skills and creativity. By balancing innovation with responsibility, the Bill sets the tone for a safer and healthier digital future. It also strengthens India’s standing as a nation that can lead in shaping global digital policy. Most importantly, it ensures that technology serves society rather than harms it.”

By fLEXI tEAM