New bill to regulate online gaming tabled in Lok Sabha – 10 things to know about the proposed law

A BILL seeking to prohibit and regulate online gaming was introduced in the Lok Sabha on Wednesday, 20 August, amid opposition protests over electoral roll revision in Bihar.

Union minister Ashwini Vaishnaw introduced the bill as opposition members continued to raise slogans and display placards.

The chair asked Congress member Manish Tewari to make his remarks on opposing the bill at the introduction stage. However, he said the House should first discuss the Special Intensive Revision exercise in Bihar. NK Premchandran of the RSP also refused to speak, saying the House was not in order.

Parliamentary Affairs Minister Kiren Rijiju slammed the opposition for creating disruptions, saying even school students are now mocking the parliamentarians for their conduct in the House.

As the Opposition protest continued, PC Mohan, who was chairing the proceedings, adjourned the House till 2 PM.

Here are 10 things about the proposed law:

1-The bill prohibits offering, operating, or facilitating online money games, irrespective of whether based on skill, chance, or both. The bill has also proposed a blanket ban on advertising and promotion of money games across all forms of media.

The Bill proposes a ban on financial transactions linked to online money games; banks and payment systems are barred from processing such payments. It empowers agencies to block access to unlawful gaming platforms under the Information Technology Act, 2000.

2-The bill also calls for promoting eSports and online social games. E-sports are recognised as a legitimate form of competitive sport in India. The Ministry of Sports will frame guidelines and standards for conducting e-sports events.

3-The 13-page bill drafted by the Union Ministry of Electronics and Information Technology (MeitY) describes an online money game as one played by a user who deposits money in expectation of winning monetary and other enrichment, the news agency said. 

Union Minister of Electronics and Information Technology Ashwini Vaishnaw is scheduled to move the Bill in Lok Sabha.

4-The central government will establish a national-level Authority or designate any existing Authority or Authorities or any agency for oversight.

The authority's functions include categorising and registering online games, determining whether a game qualifies as a money game, and handling complaints and grievances related to online games.

Three-year jail term, fine of up to ₹1 crore.

5-Those found guilty of offering or facilitating online money gaming can lead to imprisonment of up to 3 years and/or a fine of up to ₹1 crore. Advertising money games can lead to imprisonment up to 2 years and/or a fine up to ₹50 lakh.

Those found guilty of financial transactions related to money games can face imprisonment for up to 3 years and/or a fine of up to ₹1 crore.

Repeat offences attract enhanced penalties, including imprisonment of 3–5 years and fines up to ₹2 crore.

Companies will be liable

6- Companies and their officers will be held liable for offences under the Act, unless they prove due diligence. Independent directors or non-executive directors not involved in decision-making are protected, according to the proposed law.

7- Union government may authorise officers to investigate, search, and seize digital or physical property linked to offences. Officers empowered to enter, search, and arrest without warrant in certain cases of suspected offences.

The provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023 apply to investigations under the Act.

Govt to make rules for social gaming

8- The bill empowers the Central Government to make rules for a) Promotion of e-sports and social gaming, b) Recognition, Categorisation and registration of online games, c) Powers and functioning of the Authority and d) any other matter required or permitted to be prescribed under this Act.

9-The proposed law aims at enhancing India’s role in global gaming exports, employment and innovation, according to a government statement. It also encourages constructive participation through e-sports and skill-based digital games.

Safe Digital Environment

10 - The law protects families from predatory online money gaming practices. It also positions India as a leader in responsible gaming innovation and digital policy-making, the government said.

“The Promotion and Regulation of Online Gaming Bill, 2025 strikes a balanced path—encouraging innovation and youth engagement through safe and positive online gaming, while firmly prohibiting harmful online money games,” the statement said.