In a landmark move, the Lok Sabha and the Rajya Sabha have passed the Promotion and Regulation of Online Gaming Bill, 2025, a transformative piece of legislation introduced by the Modi government to tackle the escalating challenges posed by the unregulated online gaming sector. Spearheaded by Union Minister for Electronics and Information Technology Ashwini Vaishnaw, this bill champions the promotion of e-sports and socially beneficial games while decisively curbing real-money gaming platforms that have become a scourge for India’s youth. Addressing the Real-Money Gaming Crisis India’s online gaming industry has exploded over the past decade, driven by affordable internet, widespread smartphone access, and the rise of fintech. With over 50 crore gamers by 2024, India stands as the world’s largest gaming market by volume. While e-sports and casual gaming have flourished, real-money gaming platforms—encompassing fantasy cricket, poker, rummy, and lotteries—have gained alarming traction, often with devastating consequences. These platforms, where users wager money in hopes of quick returns, have emerged as a significant societal concern, particularly for the youth, who form the backbone of India’s gaming demographic. The financial and social toll of real-money gaming is profound. These platforms, often operating from offshore jurisdictions, employ manipulative algorithms and addictive designs to lure players with promises of wealth. Young individuals, particularly in semi-urban and rural areas, have fallen prey to compulsive gaming, leading to debt traps, pawned family assets, and even suicides. Reports indicate over 2,000 suicides annually linked to gaming-related financial distress, underscoring the crisis’s severity. Beyond personal ruin, these platforms have facilitated financial fraud, with over Rs 4,000 crore in betting scams reported in 2023-24. Many operate in regulatory grey zones, evading taxes and enabling money laundering, posing risks to national security, including links to terror financing. The absence of a cohesive national framework has exacerbated these issues, with inconsistent state-level laws failing to curb predatory practices, necessitating urgent and comprehensive regulation. A Robust Framework for Regulation and Protection The Promotion and Regulation of Online Gaming Bill, 2025, strikes a delicate balance between fostering innovation and shielding society from the harms of real-money gaming. At its core, the legislation imposes a blanket ban on all online games involving monetary stakes, whether based on skill or chance, targeting platforms like fantasy sports, poker, and rummy. To ensure compliance, the bill prohibits advertisements promoting such platforms, including endorsements by celebrities, athletes, and influencers, addressing the pervasive influence of high-profile figures in luring young players. Financial Restrictions and Penalties Financial restrictions form a critical pillar of the legislation. Banks, financial institutions, and payment intermediaries are barred from processing transactions linked to real-money gaming, effectively cutting off the financial lifeline of these platforms. Violations carry severe consequences, treated as cognisable and non-bailable offences, with penalties including up to three years’ imprisonment and fines of up to Rs 1 crore. Repeat offenders face even harsher punishments, with imprisonment extending to five years and fines up to Rs 2 crore. Responsible officers within companies are also held accountable, ensuring no loopholes for exploitation. Online Gaming Authority To oversee this transformative shift, the bill establishes a national-level Online Gaming Authority, funded with an initial capital expenditure of Rs 50 crore and an annual recurring cost of Rs 20 crore from the Consolidated Fund of India. This authority will coordinate with state governments, issue guidelines, manage complaints, and ensure age-appropriate categorisation of games, creating a safe and structured gaming environment. Authorised officers are empowered to conduct warrantless searches, seize assets, and block non-compliant platforms under the Information Technology Act, 2000, with investigations aligned to the Bharatiya Nagarik Suraksha Sanhita, 2023, for consistency. Promoting E-Sports and Social Gaming While curbing harmful practices, the bill actively promotes e-sports and social gaming as avenues for constructive engagement. E-sports is recognised as a legitimate competitive sport, with the Ministry of Youth Affairs and Sports tasked with establishing training academies, guidelines, and incentive schemes. The legislation also supports social and educational games that foster skill development, cultural values, and digital literacy, overseen by the Ministry of Electronics and Information Technology (MeitY) and the Ministry of Information and Broadcasting (MIB). Players are treated as victims rather than offenders, with provisions for age verification, expenditure limits, and robust grievance redressal systems to ensure consumer protection. Prioritising Youth Welfare Over Revenue The Modi government’s decision to prioritise the welfare of India’s youth over the economic allure of real-money gaming reflects a commitment to long-term societal well-being and national security. The online gaming sector, while generating Rs 31,000 crore in revenue, Rs 20,000 crore in taxes, and attracting Rs 25,000 crore in foreign direct investment annually, has exacted a heavy social cost. With 60 per cent of India’s 55 crore gamers under 25, the youth are particularly vulnerable to the addictive designs of real-money platforms. The government’s focus on protecting this demographic from financial ruin, mental health crises, and social disruption underscores its vision for a stable and prosperous Digital India. The legislation also mitigates national security risks posed by offshore platforms linked to financial crimes, aligning India’s digital regulations with global standards. Countries like China, Europe, and the US have similarly restricted online gaming excesses, and India’s proactive stance positions it as a leader in responsible digital governance. By promoting e-sports and social gaming, the government is fostering innovation, with the potential to create over 2 lakh jobs and establish India as a global e-sports hub by 2027. This aligns with Prime Minister Narendra Modi’s vision of leveraging India’s cultural heritage to create globally competitive gaming products. Critics, including opposition leaders like Congress MP Karti Chidambaram and Priyank Kharge, argue that the blanket ban may drive users to unregulated offshore platforms, risking data theft and financial fraud, while potentially costing Rs 20,000 crore in tax revenue and 2 lakh jobs. However, the government’s viewpoint is clear: the social and psychological harms outweigh these losses, and the bill’s robust enforcement mechanisms, including platform blocking, aim to curb black markets. A Bold Step Towards a Safe Digital India The Promotion and Regulation of Online Gaming Bill, 2025, marks a defining moment in India’s digital evolution. By decisively banning real-money gaming, imposing stringent penalties, and fostering a vibrant ecosystem for e-sports and social gaming, the Modi government has taken a bold stand to protect India’s youth from financial and psychological exploitation. While debates over economic implications continue as the bill heads to the Rajya Sabha, its unwavering focus on societal stability and national security signals the end of an era of unregulated gaming. This legislation paves the way for a responsible, innovation-driven gaming industry, ensuring that India’s digital future is both safe and promising for generations to come. The writer is a national spokesperson of BJP and an author. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect News18’s views.