New Bill Seeks to Ban Real Money Online Games
New Bill Seeks to Ban Real Money Online Games
The Lok Sabha has passed a bill to ban online games that involve real money, citing concerns about gambling addiction, financial fraud, and money laundering. The legislation is now awaiting approval from the Rajya Sabha to become law.
The Promotion and Regulation of Online Gaming Bill, 2025, prohibits offering, operating, or facilitating online money games, regardless of whether they are based on skill or chance. The government stated that the ban aims to prevent the harms of addiction and financial loss. The bill also addresses concerns that these platforms are used for financial fraud, money laundering, and other activities that could compromise national security.
The bill also prohibits the advertisement and promotion of these games. Additionally, banks and payment systems are barred from processing transactions related to them. Existing online money games in the country will be blocked under the Information Technology Act, 2000.
Penalties for violations include up to three years of imprisonment and/or a fine of up to one crore rupees for entities involved in or facilitating online money gaming. Advertising these games can lead to a penalty of fifty lakh rupees or up to two years in jail. Financial transactions related to these games could result in up to three years in prison and/or a one crore rupee fine. Repeat offenses will incur stricter penalties, including three to five years in jail and a fine of up to two crore rupees.
Lawmakers believe a complete ban is more effective than regulation due to the financial ruin caused by the addictive nature of these games. They also noted that many platforms have links to financial fraud and tax evasion, with offshore operators making it difficult to enforce state laws and collect taxes.
