The Pros And Cons Of Online Gaming Bill 2025

The Promotion and Regulation of Online Gaming Bill, 2025 was passed in the Lok Sabha today. The proposed law seeks to encourage e-sports and social games, while prohibiting real money gaming and online betting that could lead to addiction, financial loss, and security risks.

Online Gaming Bill 2025: What It Aims To Do

• Encourage Positive Gaming: Promote e-sports and safe social or educational games.
• Ban Risky Money Games: Stop online gambling, betting, and real money games that can cause addiction or financial loss.
• Protect Citizens and Security: Safeguard users, especially youth, from fraud, money laundering, and other online risks.
• Support Innovation: Provide rules and guidelines to grow India's gaming industry responsibly.

Provisions Of The Bill

• E-sports: Recognised as a legitimate sport; Ministry of Sports to set guidelines, run awareness campaigns, and support training academies and research centres.
• Social and Educational Games: Government can register and support safe, age-appropriate games that promote skill, culture, and digital literacy.
• Harmful Online Money Games: Complete ban on money games, their promotion, and related financial transactions; unlawful platforms can be blocked.
• Online Gaming Authority: Central government to oversee gaming, categorise games, determine money games, handle complaints, and issue guidelines.

Offences And Penalties

• Offering/facilitating online money gaming: up to 3 years imprisonment and/or Rs 1 crore fine.
• Advertising money games: up to 2 years imprisonment and/or Rs 50 lakh fine.
• Financial transactions related to money games: up to 3 years imprisonment and/or Rs 1 crore fine.
• Repeat offences: 3-5 years imprisonment and fines up to Rs 2 crore.
• Certain offences are cognisable and non-bailable.
• Officers may investigate, search, and seize digital/physical property linked to offences.
• Powers to enter, search, and arrest without warrant in certain cases.
• Companies and officers held liable unless due diligence is proven.
• Independent or non-executive directors not involved in decision-making are protected.

Pros Of The Bill

• Boosts Creative Economy: Positions India as a global hub for gaming exports, innovation, and jobs.
• Empowers Youth: Encourages skill-based gaming and e-sports participation.
• Ensures Safety: Protects families from predatory real-money gaming.
• Global Leadership: Strengthens India's role in responsible gaming and digital policy.

Criticism Surrounding The Bill

Opposition leaders have criticised the bill for being rushed, lacking stakeholder consultation, and potentially undermining regulation.

Congress MP Karti Chidambaram said on X, "The proposed online gaming bill, The Promotion and Regulation of Online Gaming Bill, 2025 is being introduced without industry consultation, is a knee-jerk reaction that could prove counterproductive... The government should refer the bill to a select committee and hold public hearings to ensure a balanced and informed approach."

Congress leader Priyank Kharge argued that regulation was a better solution than banning something altogether. He said, "Regulation is the only way to safeguard our citizens, without it, they'll be pushed to playing on offshore servers in China or other countries which is beyond our reach of protection."

Congress MP Shashi Tharoor spoke to reporters about the lack of proper parliamentary debate. "In my view, many countries have studied this issue in great detail and concluded that legalising and taxing online gaming allows governments to generate funds that can be used for various worthy causes... With Parliament not functioning effectively, the bill will likely be passed without any proper discussion," he said.

Cons Of The Bill

• Industry and Jobs at Risk: According to Priyank Kharge, over 2,000 gaming startups and more than 2 lakh IT, AI, and design jobs could be affected. Karti Chidambaram has said that up to 4 lakh jobs may be at risk due to the bill.
• Threat to Foreign Investment: The bill could wipe out $6 billion in investments and push users to offshore platforms, Mr Chidambaram said.
• Revenue and Tax Loss: India could lose around Rs 20,000 crore annually from GST and income tax, as per Mr Chidambaram. Online gaming is currently subject to 28% GST and 30% tax on net winnings.
• Underground Markets And Addiction: Banning online gaming may push users to unregulated platforms, increasing the risk of illegal activities.
• National Security Risks: Offshore platforms may facilitate money laundering, terror financing, and data theft.
• Ecosystem Collapse: Priyank Kharge said Rs 7,000 crore spent annually on ads, data centres, sponsorships, and cybersecurity could vanish, affecting India's gaming innovation.
• Policy Concerns: A blanket ban without stakeholder consultation may create illegal markets and threaten national security.