New Delhi [India], August 20 (ANI): The Online Gaming Bill introduced in the Lok Sabha on Wednesday encourages e-sports and online social games while prohibiting harmful online money gaming services, advertisements, and financial transactions related to them.

The Promotion and Regulation of Online Gaming Bill, 2025 also proposes to outlaw 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 and IT said in a statement, minutes after introduction of the Bill.

The Bill seeks to completely ban on offering, operating, or facilitating online money games, irrespective of whether based on skill, chance, or both, the government said.

This move is to protect India's 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, the government argued.

Over the past 11 years, digital technologies have brought a major change in our lives. Digital India, Digital Public Infrastructure, UPI payment system, 5G connectivity, and the semiconductor ecosystem have together given a new identity to our country. At the same time, new risks have emerged, especially in the digital space.

'It is therefore equally important to ensure that society is protected from potential harms of technology misuse. With this thought process, the Government has brought forward the Promotion and Regulation of Online Gaming Bill, 2025,' the government said.

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.

Additionally, the government said online money gaming platforms are often misused for financial fraud, money laundering, terror financing and messaging activities that compromise national security.

This also aligns the national laws for the digital domain with the existing laws 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.

For the promotion of e-sports, which has been recognised as a legitimate form of competitive sport in India, the Ministry of Youth Affairs and Sports will establish a dedicated framework.

For online social games, the Ministry of Electronics and IT (MeitY) and the Ministry of Information and Broadcasting (MIB) will extend support to online games that foster educational and cultural values, skill development and social engagement.

Following are some of the key provisions of the Bill.

Notably, e-sports has been recognised as a legitimate form of competitive sport in India. The Ministry of Sports to frame guidelines and standards for conduct of e-sports events. Training academies, research centres, and technology platforms for advancement of e-sports shall be established. Incentive schemes, awareness campaigns and integration of e-sports into broader sports policy initiatives shall be brought in.

Under the new Bill, the central government has been empowered to recognise, categorise, and register online social games, besides facilitation of platforms for development and distribution of safe, age-appropriate social and educational games, awareness programmes on the positive role of social games in recreation, skill-development and digital literacy; and support for cultural and educational gaming content aligned with Indian values.

The Bill seeks to completely ban on offering, operating, or facilitating online money games, irrespective of whether based on skill, chance, or both. A ban on advertising and promotion of money games across all forms of media has been proposed, besides on financial transactions linked to online money games; banks and payment systems barred from processing such payments.

The central government will establish a national-level authority or designate any existing Authority or Authorities or any agency for oversight. Their functions will include categorisation and registration of online games, determination of whether a game qualifies as a money game, and handling complaints and grievances related to online games.

Most importantly, failing to fulfil the law it can attract imprisonment up to 3 years and/or fine up to Rs 1 crore for offering or facilitating online money gaming. For advertising money games, and imprisonment up to 2 years and/or fine up to Rs 50 lakh may be attracted. for financial transactions related to money games, imprisonment up to 3 years and/or fine up to Rs 1 crore is being provided.

Any repeat offences may attract enhanced penalties, including imprisonment of 3-5 years and fines up to Rs 2 crore. Offences under key sections to be cognizable and non-bailable.

The central government may authorise officers to investigate, search, and seize digital or physical property linked to offences, and officers would be empowered to enter, search, and arrest without warrant in certain cases of suspected offences.

'The Promotion and Regulation of Online Gaming Bill, 2025 strikes a balanced path--encouraging innovation and youth engagement through safe and positive online gaming, while firmly prohibiting harmful online money games. It reflects the Government's commitment to a safe, secure, and innovation-driven Digital India that boosts creativity, safeguards citizens, and strengthens national security,' the government said. (ANI)