Why Indian government has banned online money gaming platforms
What's the story
The Indian government has banned online money gaming platforms, citing concerns over addiction and mental health issues. According to government data, around 45 crore Indians lose nearly ₹20,000 crore annually to these platforms. A source told the Times of India that the Centre views real-money online gaming as a "major problem for society."
Welfare focus
Law seeks to ban platforms with monetary wagering
The source further revealed that the government has decided to prioritize public welfare over potential revenue losses from banning these platforms. The law, called the Promotion and Regulation of Online Gaming Bill, 2025, seeks to ban platforms or games where users wager money for higher monetary returns. The Ministry of Electronics and Information Technology (MeitY) stressed that the addictive nature of such games has caused major mental health issues among users, especially children and young adults.
Penalties
Strict penalties for offenders
The law proposes strict penalties for those offering or facilitating online money games. Offenders could face up to three years in prison, a fine of up to ₹1 crore, or both. Repeat offenders would face harsher mandatory punishments. Promoting these platforms is also a crime under the law, with penalties including up to two years in prison and/or a fine of up to ₹50 lakh.
Targeted action
It doesn't intend to punish players
The law doesn't intend to punish players of these games, but rather those who offer real-money gaming platforms or facilitate transaction services. Online gaming is a broad category that includes everything from casual mobile games to real-money fantasy sports and poker platforms.
Industry response
Industry bodies express concerns
Industry bodies representing the real money game players, like India Gaming Federation, E-Gaming Federation, and Federation of Indian Fantasy Sports, have written to Home Minister Amit Shah expressing their concerns over the law. They argue that it could kill a job-creating industry. The letter highlights that the online skill gaming sector is a "sunrise sector" with an enterprise valuation of more than ₹2 lakh crore, and annual revenue exceeding ₹31,000 crore.