India Moves Toward Total Ban on Real Money Online Gaming Under New IT Ministry Bill

Real money online gaming in India may soon face a complete shutdown under a newly proposed piece of legislation aimed at outlawing the activity nationwide. According to Reuters, the draft bill, which spans 13 pages and is designed to eliminate real money play in online games, has not yet been made public.

The legislation, titled the Promotion and Regulation of Online Gaming Bill 2025, has been prepared by India’s IT ministry and introduces potential penalties including prison terms of up to three years and fines for those who fail to comply.

This marks the latest in a series of measures targeting gambling in India, following earlier proposals such as the imposition of a 40 percent “sin tax” on gambling activities.

The draft text specifically targets the online sector, stating that “Such games often use manipulative design features, addictive algorithms […] while promoting compulsive behavior leading to financial ruin.”

India’s online real money gaming market is currently estimated at $3.6 billion, according to research cited in connection with the bill. The definition outlined in the draft describes online money games as those in which a user participates by depositing funds with the expectation of winning monetary or other tangible rewards.

The bill explicitly prohibits participation or facilitation of such activities, stating that no individual “shall offer, aid, abet, induce or otherwise indulge or engage in” providing online money games and their related services.

By fLEXI tEAM