The Lok Sabha has passed the Promotion and Regulation of Online Gaming Bill, 2025, by voice vote. The Bill bans real money gaming platforms that involve monetary deposits and gambling-like mechanisms.
Key Features of the Bill
- Ban on Real Money Games: Prohibits offering, operating, advertising, or participating in online money games such as fantasy sports and card games with cash stakes.
- Creation of Authority: Provides for an authority to promote e-sports as a safe, creative, and recreational industry.
- Public Interest Rationale: Cites social, financial, psychological, and health harms caused by addiction to money gaming platforms.
- Algorithms & Fraud Concerns: Notes that manipulative algorithms can worsen fraud, cheating, and addiction risks.
Government’s Stand
- National Interest: IT Minister Ashwini Vaishnaw stressed that families are being destroyed and life savings are being lost due to these platforms.
- No Draft Consultation: Government argued prohibition laws don’t require draft consultations, though industry was previously consulted.
- Political Consensus: The Bill enjoyed cross-party support, reflecting a shared concern over online gaming harms.
Concerns & Challenges
- Industry Pushback: The gaming sector argues the Bill could face constitutional challenges on grounds of:
- Trade restrictions (violation of freedom of trade).
- Legislative competence (whether the Union has full powers in this domain).
- Impact on Innovation: May discourage investment in India’s online gaming industry, which sought clear regulatory guidelines rather than an outright ban.
Significance
- Aims to protect citizens from gambling harms while separating real-money gaming from skill-based e-sports.
- Provides much-needed clarity in regulation, though the balance between protection and innovation remains debated.
Conclusion:
The Online Gaming Bill, 2025 seeks to safeguard citizens from gambling-related harms while promoting e-sports as a regulated industry. Its success will depend on striking a balance between public welfare and fostering innovation in digital gaming.
