The Lok Sabha on Wednesday passed the Promotion and Regulation of Online Gaming Bill, 2025 in Lok Sabha, recognising esports and social games while banning real-money formats. The Bill was tabled by the government earlier in the day.
Ministry of Electronics and Information Technology (MeitY) officials said the step prioritises public welfare over revenue, noting that online money games were causing losses of over ₹20,000 crore annually to users, prompting many to take drastic measures, including taking one’s life.
‘Distress to a large number of households’
MeitY Secretary S Krishnan told a television news channel that the number of jobs created by the industry was in thousands, but over 450 million people pay online money-based games, creating distress to a very large number of households.
The government said the prohibition will cost it heavily in GST revenue. Collections from online gaming surged by over 400% after the GST Council imposed a 28% levy in 2023, jumping from ₹1,349 crore to ₹6,909 crore in just six months. But senior officials insist the trade-off is worth it. “We chose the safety of middle-class families over some industry. Limiting harm to society is more important than revenue,” one said.
Framing the move as necessary to protect families, ensure transparency, and curb national security risks, officials said the Bill is not intended to crush gaming as a whole but to distinguish between what benefits society and what causes harm. “We are recognising what is useful, giving it legal status and support. What is harmful is now prohibited,” the official added.
‘New era of India’s digital policy’
With esports and social gaming poised for growth, and real-money gaming facing extinction, the Bill signals a new era in India’s digital policy—one that prioritises public safety over profits.
The Bill has a three part framework – Esports, which will be recognised as a legitimate online competitive sport akin to hockey, football, or cricket; online social and educational games, such as card games, or interactive learning apps, which will be encouraged for their cultural and educational value. Oline money games, which involve stakes or wagers, will be prohibited.
The Bill empowers the Centre to act against companies offering banned games, as well as celebrities and influencers promoting them. Penalties include jail terms of up to three years and fines of up to ₹1 crore for operators, and two years in jail and ₹50 lakh fines for endorsers. Banks and payment firms will be barred from processing transactions linked to prohibited games.
Unlike state laws on lotteries or gambling, the Bill is limited only to online gaming, leaving scope for states to adapt enforcement.
For the first time, esports will have legal backing in India. The government plans to promote training academies, research centres, and incentive schemes, while integrating esports into broader sports policy.
Already included in the Asian Games and the after the recent announcement of inaugural Olympic Esports Games to be held in Riyadh, Saudi Arabia, in 2027, esports are being considered for fostering strategy, critical thinking, and team spirit.
“This is a long-awaited step to bring esports into the mainstream, with the same legitimacy as physical sports,” said a senior official.
The Bill also offers support for online social games—casual, interactive platforms that serve educational or recreational purposes. Such games are viewed as a form of digital social interaction and part of India’s growing creator economy.