The Union government, led by Prime Minister Narendra Modi, is set to ban online games that involve money. The proposed Promotion and Regulation of Online Gaming Bill 2025 is scheduled to be introduced in the Lok Sabha today. If passed, the bill will impact a rapidly growing industry that has attracted billions of dollars in foreign investment.

The bill targets real-money online games, where users deposit money to play games with the expectation of winning cash or other rewards. According to the draft, no person shall “offer, aid, abet, induce, or otherwise engage” in such money-based gaming activities. The government has cited concerns over psychological and financial harm, including anxiety, depression, sleep disorders, and other behavioral issues linked to prolonged gaming, particularly among children and young adults.

Currently, the Indian online gaming market is valued at $3.8 billion and is expected to reach $9.2 billion by 2029, according to venture capital firm Lumikai. The ministry highlighted that addictive design features and algorithms in these games often promote compulsive behavior, which can lead to financial losses.

Under the proposed law, anyone promoting such platforms, including social media influencers, could face up to two years in prison and a fine of ₹50 lakh. The government has also expressed concern about alleged money laundering through online money gaming services.

However, the bill clearly distinguishes between gambling-based games and competitive e-sports or game development, which the government intends to promote. These sectors are seen as crucial drivers for the growth of the broader online gaming industry in India.

The bill has been cleared by the Union Cabinet and is now part of the ‘List of Government Business’ in the Lok Sabha for discussion on August 20 and 21. Minister of Electronics and Information Technology Ashwini Vaishnaw is expected to move the bill in Parliament.

If approved, this move will mark a significant step in regulating the online gaming sector, balancing industry growth with the protection of users from addiction and financial risk.