New Delhi, August 20, 2025 — In a landmark move to regulate India’s booming online gaming sector, the central government has introduced a bill in the Lok Sabha seeking to ban all online games involving real money transactions.
The proposed legislation aims to curb gambling addiction, money laundering, and financial fraud that have surged alongside the explosive growth of the digital gaming industry.
Under the provisions of the bill, hosting, promoting, or participating in money-based online games could attract penalties of up to ₹1 crore and imprisonment of up to three years. The government has also proposed strict measures against advertisements and financial transactions associated with these platforms, ensuring no loopholes for illegal operations.
An official from the Ministry of Electronics and Information Technology (Meity) stated:
“Our priority is to safeguard citizens, especially the youth, from addiction, financial exploitation, and fraudulent gaming practices.”
The move comes amid mounting concerns over rising debts, gambling-related crimes, and unregulated financial flows through offshore gaming servers.
Industry experts predict that while the bill could protect vulnerable users, it may also impact India’s growing online gaming economy, currently valued at ₹30,000 crore.
The bill has now been sent to a parliamentary panel for further review, where amendments and stakeholder consultations are expected before it is passed into law.
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