The Union government, led by Prime Minister Narendra Modi, is preparing to bring a new law that may completely ban online games played with money. The proposed bill, called the “Promotion and Regulation of Online Gaming Bill 2025,” is expected to be introduced in the Lok Sabha soon. If passed, this decision could hit the fast-growing online gaming industry, which has already attracted billions in foreign investments.
Complete ban on real-money gaming
The new bill, approved by the Union Cabinet, aims to put a blanket ban on all online games where users stake money in hopes of winning rewards. Reports suggest that the main reason behind this strict step is the rising fear of money laundering and illegal transactions happening through such platforms.
According to the draft, an online money game is one where a player deposits money in return for a chance to win monetary benefits. Minister of Electronics and Information Technology Ashwini Vaishnaw is set to present the bill in Parliament.
Health risks linked to online games
The government has pointed out that the addictive nature of online gaming is also a major concern. It says these games can cause serious mental health issues, especially among children and young adults. Cases of anxiety, stress, sleep problems, and behavioural issues have been linked to prolonged gaming.
A report also highlights how real-money gaming apps use manipulative designs and addictive algorithms that push users to spend more time and money, often leading to financial losses.
Gaming industry’s rapid growth
Despite these concerns, India’s online gaming sector has been growing at a fast pace. As per venture capital firm Lumikai, the market could reach $3.6 billion by 2029. Celebrity endorsements from Bollywood and cricket stars, along with heavy advertising, have played a big role in making these games popular.
However, industry experts fear that a complete ban may destroy a sector that provides jobs and attracts global investments. Leading gaming bodies have already written to the government, saying this step could act as a “death blow” to legitimate businesses.
Strict punishment for violators
The bill clearly mentions tough penalties for anyone breaking the rules. Offering online real-money games could result in up to three years in jail and a fine of ₹1 crore. Even social media influencers or promoters endorsing these games could face two years in prison along with a fine of ₹50 lakh.
Impact on India’s Gaming Market
The decision comes at a time when the Indian online gaming industry is growing rapidly. According to venture capital firm Lumikai, the market is expected to reach $3.6 billion by 2029. The ban would directly affect thousands of jobs and could discourage further foreign investment.
Gaming companies and industry bodies have already raised concerns, calling the move a “death knell” for a sector that has provided jobs, tax revenue, and global recognition for Indian startups.
Celebrity Endorsements Under Scrutiny
Real-money gaming apps have become popular partly because of endorsements from Bollywood actors and cricket stars. With the new law, even celebrities promoting such apps could face penalties. This is expected to reduce aggressive marketing campaigns that have attracted millions of new players in recent years.
What lies ahead?
The decision has sparked a big debate. On one hand, the government argues that the law is necessary to protect people from addiction and financial harm. On the other hand, the gaming industry says regulation, not a complete ban, is the right way forward.
If the bill passes in Parliament, India’s booming online real-money gaming market could come to a sudden stop. The coming weeks will be crucial, not just for players, but also for companies and investors linked to this industry.
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