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The lower house, being briefly chaired by PC Mohan, was adjourned till 2 PM soon after the Bill was introduced.
The cabinet on Tuesday had reportedly approved this legislation which will impose a blanket ban on online games with a monetary component, noting they lead to suicides due to financial losses besides addiction among children and the youth.
What does the Bill say?
According to the draft, anyone offering online money gaming services in violation of the law will face imprisonment of up to three years or a fine of up to ₹1 crore, or both. Those found advertising such services could face up to two years of jail and/or a fine of up to ₹50 lakh. Banks and financial institutions facilitating transactions for money games will also be liable to penalties, including up to three years in jail or a fine of ₹1 crore.
Repeat offences attract stricter punishment, with jail terms between three and five years along with higher fines. The Bill, however, does not criminalise players of online money games, treating them as victims rather than offenders.
The proposed law also seeks to establish a statutory regulatory authority with powers to determine whether a game qualifies as an online money game. All platforms will have to register and comply with the rules set by the authority. The Bill defines an online money game as one played by a user by “paying fees, depositing money or other stakes, in expectation of winning in return of money or other stake, irrespective of whether such game is based on skill, chance or both.” It explicitly excludes eSports and online social games such as casual entertainment or skill-based formats that do not involve monetary stakes. Officials said the legislation aims to address fragmented regulation in the sector and tackle concerns around gambling, financial exploitation, mental health risks, and illicit activities such as money laundering. Instances of severe financial distress and even suicides linked to online money gaming were cited during cabinet deliberations. At the same time, the Bill seeks to promote the eSports ecosystem, recognising that global competitiveness in this space could boost innovation, provide opportunities for Indian startups, and position the country as a hub for game development.
Industry warns of consequences
The online gaming industry has raised alarm, warning that the proposed blanket ban could trigger large-scale job losses and the shutdown of companies. In a joint letter to Home Minister Amit Shah, the All India Gaming Federation (AIGF), E-Gaming Federation (EGF) and the Federation of India Fantasy Sports (FIFS) said the Bill would “destroy over 2 lakh jobs, result in over 400 companies shutting down, and weaken India’s position as a digital innovator.”
They cautioned that legitimate platforms would be forced to close, pushing crores of users towards illegal matka networks, offshore gambling sites, and unregulated operators. “This move will strike a death knell for a legitimate, fast-growing sector that has been contributing significantly to the economy,” the letter said.
The industry bodies highlighted that online skill gaming has grown into a ₹2 lakh crore sector, generating ₹31,000 crore in annual revenue and over ₹20,000 crore in taxes.
The sector has been growing at 20% CAGR and was expected to double by 2028. India’s gamer base rose from 36 crore in 2020 to more than 50 crore in 2024, while foreign direct investment in the sector crossed ₹25,000 crore by June 2022.
