Lok Sabha Passes Bill To Prohibit Online Money Games

The Lok Sabha today passed the Promotion and Regulation of Online Gaming Bill, 2025, which seeks to prohibit 'online money games' and offering of bank services, advertisements, etc. related thereto. Union Minister of Electronics and Information Technology Ashwini Vaishnaw introduced the Bill.The Bill defines 'online money game' as "an online game, irrespective of whether such game is based on skill, chance, or both, played by a user by paying fees, depositing money or other stakes in expectation of winning which entails monetary and other enrichment in return of money or other stakes; but shall not include any e-sports".As per Section 2(h), 'online money gaming service' shall mean a service offered by a person for entering or playing the online money game. Any person who extends such service in contravention of the proposed law shall be punishable with upto 3 years imprisonment, or upto Rs.1 crore fine, or both. A person who engages in advertisement thereof shall be punishable with imprisonment upto 2 years, or fine upto Rs.50 lakhs, or with both.The Bill also provides for establishment of an Authority by the Central government, which can be vested with the authority to suo-motu consider whether any online game constitutes an online money game. It allows the government to endow vast investigative powers on authorized officers, that would include arrest and search of property, without warrant, if there's 'reasonable suspicion' of offense being committed/about to be committed."In case of failure to comply with the provisions of section 5, section 6 and section 7, notwithstanding anything contained in this Act or in section 69A of the Information Technology Act, 2000, any information generated, transmitted, received or hosted in any computer resource in relation to online money gaming service shall be liable to be blocked for access by the public in such manner as provided in that Act", the Bill enunciates.Notably, the proposed law shall apply not only to online money gaming services offered within the territory of India, but also to those operated from outside India.While the Bill prohibits 'online money games', it excludes from the scope of prohibition 'e-sports' which may be recognized and promoted by the Central government, as deemed appropriate, as a legitimate form of sports in India. Alongwith e-sports, the government may also consider promoting and recognizing 'online social games' for educational and recreational purposes, which may include a subscription fee for entry but nothing in the nature of a wager/betting.According to the text, 'e-sport' means an online game played as part of multi-sports events or one that involves organized competitive events between individuals or teams, conducted in multiplayer formats. It shall be duly recognized under the National Sports Governance Act, 2025, and registered with the Authority or agency constituted in terms of the proposed law.Further, its outcome should depend solely by factors like physical dexterity, mental agility, strategic thinking or other similar skills of players. 'E-sports' may include payment of fees solely for entering the competition or covering administrative costs. It may also include performance-based prize money. However, it shall not involve "placing of bets, wagers or any other stakes by any person, whether or not such person is a participant, including any winning out of such bets, wagers or any other stakes."In the Statement of Object and Reasons of the Bill, it is stated that "the unchecked and widespread proliferation of online money games which readily accessible through mobile devices, computers, and the internet, and offering monetary returns in exchange for deposited funds has led to grave social, economic, and psychological consequences across the country"."These platforms often promote compulsive and addictive behaviour, resulting in financial ruin, mental health disorders, and increasing incidents of fraud and exploitation", the Bill states, while highlighting the adverse impact of such games on young and economically vulnerable people, especially in the backdrop of celebrity endorsements."In certain cases, these platforms have been linked to illegal activities including money-laundering, financial fraud, the financing of terrorism, and use as messaging platform for terrorist and terrorist organisations, thereby affecting the security and sovereignty of the State", the Bill says.Underlining the need for a robust legal framework, the Bill adds that the proposed law seeks to regulate, promote and encourage the gaming sector for innovation and economic growth, while ensuring a developed, safe and responsible digital environment for all citizens.The Bill can be read here.

Lok Sabha Passes Bill To Prohibit Online Money Games

Debby Jain

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