India’s Lok Sabha Passes Controversial Online Gaming Bill Amid Protests

NEW DELHI, India — The Lok Sabha passed the ‘Promotion and Regulation of Online Gaming Bill, 2025‘ on August 20, 2025, amid protests from the Opposition. The legislation aims to support esports and social games, while imposing a blanket ban on online gaming for real money.

This step comes as the government aims to curb gambling addiction and associated financial crime. In a media statement, officials noted, “The harms of addiction and financial loss can be prevented by banning online money gaming.”

The bill defines esports as competitive online games played among individuals or teams under pre-established rules. It emphasizes that outcomes are based on players’ skills, including mental agility and strategic planning.

Steps outlined in the bill include establishing guidelines for esports events, setting up training centers, and promoting awareness around responsible gaming practices. Government initiatives will support the growth of this burgeoning sector in India, where esports has started to gain mainstream attention.

Industry experts have welcomed the bill as a significant move for esports. “The government’s intent to promote esports is an encouraging step,” said Akshat Rathee, Co-founder of NODWIN Gaming.

Contrastingly, real-money gaming platforms fear severe repercussions. The new legislation bans financial institutions from facilitating transactions related to these platforms and imposes strict penalties, including imprisonment of up to three years for violators.

Opposition leaders have criticized the bill, stating it could lead to a loss of jobs and tax revenues, with estimates suggesting that around 400,000 jobs are in jeopardy. Critics argue that pushing the gaming underground can escalate criminal activity instead of regulating it properly.

The Indian online gaming sector, currently valued at $3.7 billion, faces significant uncertainty due to this legislation. With a projected growth trajectory now under threat, stakeholders anxiously await the implications of this landmark bill.

As discussions continue, the future of online gaming in India hangs in the balance with a new regulatory framework set to redefine the landscape.