New Delhi: The Government, on Wednesday, introduced the Promotion and Regulation of Online Gaming Bill, 2025, in the Lok Sabha amid uproar from opposition MPs. The Bill proposes to prohibit harmful online money gaming services, advertisements, and financial transactions related to them while encouraging e-sports and online social games.
Union Minister of Electronics and Information Technology Ashwini Vaishnaw tabled the Bill in the Lok Sabha. It outlaws all online betting and gambling (Satta and Jua) activities – from Online Fantasy Sports to Online Gambling (like Poker, Rummy and other Card games) and Online Lotteries, the Ministry of Electronics & IT (MeitY) said in a statement.
“This is to protect our youth from predatory online Real Money Gaming apps — that manipulate them through misleading ‘monetary return promises’ into compulsive and addictive playing, that leaves entire families in financial distress,” it has been stated.
The Government believes that the harms of addiction, financial losses, and even extreme consequences such as suicides associated with online money gaming can be prevented by prohibition of such activities, MeitY said. Additionally, online money gaming platforms are often misused for financial fraud, money laundering, terror financing and messaging activities that compromise national security, it has been highlighted.
The Bill aligns the national laws for the digital domain with the existing ones for corresponding activities in the physical world, wherein betting and gambling are restricted or punishable — such as in the Bharatiya Nyaya Sanhita, 2023, as well as various State government legislations, the statement added.
For the promotion of e-sports, the Ministry of Youth Affairs & Sports will establish a dedicated framework. For online social games, the MeitY and the Ministry of Information & Broadcasting (MIB) will extend support to online games that foster educational & cultural values, skill development and social engagement, the ministry has said.
“Thus, the Bill seeks to encourage the positive aspects of technology while protecting society from the adverse impacts of online money games,” it said.
Vaishnaw had earlier told Parliament that policies of the Centre are aimed at ensuring an open, safe, trusted and accountable Internet for its users. To help achieve this aim, the Centre has taken suitable steps to regulate financial transactions and user data protection for digital platforms, including online gaming platforms.
The minister also said that the government, vide Finance Act, 2023, has introduced income tax at the rate of 30 per cent on the net winnings in the online games with effect from the assessment year 2024-25.
The government has also introduced GST at the rate of 28 per cent in online gaming from October 1, 2023. The supplier of online money gaming shall obtain a single registration under the Simplified Registration Scheme referred to in the Integrated Goods and Services Tax Act, 2017 (IGST Act). The suppliers of offshore online money gaming are also being regulated under the IGST Act, Vaishnaw had said.