Lok Sabha passed the Online Gaming Bill 2025, paving the way for the future of the gaming industry in India. The aim of the legislation is to blanket ban the real money online games, citing some concern of gambling addiction, money laundering, financial fraud, and even going to the extreme of suicides. This bill, which will now be sent to the Rajya Sabha to get approval, will have a direct effect on the $3.8 billion gaming industry in India, which has attracted foreign investment from several global firms and is the home to some of the biggest fantasy sports startups like Dream11, Games24x7 and Mobile Premier League.
The government believes that the prohibition of money games will prevent individuals and families in the country from destitute situations and mental trauma. Officials also indicated that these platforms are used to commit illegal acts such as terror funding and encrypted communication, thus presenting a national security risk.
Simultaneously with this, the bill differentiates between unconstructive and constructive online interaction, whether money gaming or otherwise. It is the first established centre to justify esports as a genuine sporting activity in India. Provides the framework to integrate esports within the national sport frameworks, and also coordinates the formation of guidelines on the basis of esports tournaments, training academies, and research centres drafted by the Ministry of Sports. Rewards-based programmes, sensitisation and institutional planning are also proposed to aid the cultivation of esports as a mainstream field.
The legislation is also encouraging the actualisation of social and educational games that meet the Indian parameters. The government will have the power to classify and record such games, providing children and young users with safe and age-appropriate experiences.
To make sure this is monitored, the bill proposes to establish a National Online Gaming Authority that is supposed to define the categorisation of games, processing of complaints and the regulation of the practices of the industry. Any violation will result in stern punishment, lengthy sentences of up to three years, and a considerable amount of fines of 1 crore of Indian currency as a result of running or enabling money games. Repeat offenders will be dealt with more harsh punishments.
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