The Online Gaming Bill — aimed at streamlining rules for promoting online gaming platforms along with related penalties and punishments for non-compliance — saw the clearance of the Union Cabinet on Tuesday. All eyes are now on this much-awaited law that may not only define crucial aspects such as what will actually be considered online gambling but also dictate penalties for non-compliance.
Remember, the Online Gaming Bill’s passage in the Cabinet — chaired by PM Narendra Modi — comes at a time when there is a significant rise in online fraud in the country, with agencies tackling the presence and promotion of mobile apps and platforms offering such avenues from time to time. This is when the Centre has been working to regulate online gaming in the country.
A Bill has to secure the approval of both the houses of Parliament — the Lok Sabha and the Rajya Sabha — as well as President’s assent in order to become law.
Here are a few key features expected from this Bill:
Ban on online money games and services?
According to sources, no individual will be allowed to offer online money games once the Bill becomes law.
Ban on ads related to online money games?
Also, no individual will be permitted to advertise online money games, say sources.
Ban on related fund transfers?
No bank or financial institution will be permitted to provide transactions or fund transfer facilities for payments related to online money games, say sources.
‘Online money game’ definition
The Bill defines online money game as any game, whether based on skill or chance, that requires the user to pay any amount of money.
In other words, any platform requiring the user to pay a fee or make a deposit mandatorily to play the game will be considered an online money game-offering platform. And this will be regardless of whether the game is based on skill or chance.
Currently, the country’s law and courts distinguish between skill-based games and chance-based games to determine whether a game is considered gambling. It is noteworthy that several states in the country have, over the years, enacted their own laws or regulations regarding real-money online gaming and betting.
However, the government will also lose revenue of around ₹18,000–20,000 crore annually. @FinMinIndia @PMOIndia
— Tarun Sharma (@talktotarun) August 19, 2025
Online Gaming Bill: Will there be any punishment for non-compliance with regulations?
According to sources, the Bill has provisions for three types of punishments in case of non-compliance with the defined rules:
- Three-year imprisonment and a fine of Rs 1 crore for offering an online real money game
- Two-year imprisonment and a fine of Rs 50 lakh for advertising an online real money game
- Three-year imprisonment and Rs 1 crore fine for conducting transactions in an online money game
Online Gaming Bill headed to Parliament?
The Online Gaming Bill — to be formally known as the Promotion and Regulation of Online Gaming Bill, 2025 — is set to be introduced in the Lok Sabha by the Ministry of Electronics and Information Technology, tentatively on Wednesday, according to sources.
