Online social games may have an option to accept payment in the form of a subscription fee or access fee, as long as it is not in the form of a stake or wage
| Photo Credit:
lakshmiprasad S

The Government is likely to introduce a bill in Parliament on Wednesday which could place a blanket ban on all online gaming services in India. The proposed law is also aimed at regulating e-sports and online social games. Sources confirmed that the Cabinet has approved the Bill..

Significantly, the proposed law titled, ‘The Promotion and Regulation of Online Gaming Bill, 2025’ could have a provision for blocking of online money gaming services.

According to sources, the bill is likely to focus on prohibiting the offering, aiding, abetting, inducing of any online money gaming service and declare it as an offence. It is also expected to prohibit advertisement and transfer of funds. The bill is believed to have provision of penalty of up to ₹1 crore or jail term up to 5 years or both. In case of offence by the company, the bill is likely to talk about declaring person in-charge at the time of offence responsible, prosecuted and punished.

There have been lot of criticism regarding online money gaming. There have cases of big financial losses due to online money gaming resulting in crime. There is also thinking that such gaming provides mechanism for money laundering. There have been issues in terms of enforcement as many of the online money gaming companies have servers hosted or operated from outside India, said sources. .

The Bill is also understood to have envisioned the creation of a central authority to promote competitive e-sports in the country, while ensuring overall compliance with the law. The Centre will also recognise, categorise and register “online social games” with the authority and facilitate the development and availability of online social games for recreational and educational purposes. Online social games may have an option to accept payment in the form of a subscription fee or access fee, as long as it is not in the form of a stake or wager.

Sources said that the as there is no regulatory framework for e-Sports and online social games has led to a fragmented policy environment, resulting in ambiguity for industry stakeholders and insufficient safeguards for users.

With India emerging as one of the fastest-growing digital gaming markets, it is imperative to ensure that this growth is aligned with national interests, public safety, and ethical business practices. A structured regulatory approach will help address critical concerns such as content moderation, age-appropriate access, and addiction risks targeting vulnerable user groups, especially minors, said sources.

If the draft Bill is implemented in its current form, it will be a death blow to the online gaming industry in the country, which is projected to be a $9 billion market by 2029. According to a report by FICCI and EY from March 2025, online gaming companies in India collectively earned a revenue of close to $2.7 billion in 2024.

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Published on August 19, 2025