New Delhi, August 20: The Union Cabinet on Tuesday approved the Promotion and Regulation of Online Gaming Bill, which seeks to ban money-based online games and their advertisements, while formally recognising and promoting eSports and online social gaming.
According to officials, the Bill proposes strict penalties for violators, including imprisonment of up to three years and fines of up to ₹1 crore for those offering money-based online gaming services. Advertising such platforms will also attract punishment of up to two years in jail or fines up to ₹50 lakh. Repeat offenders could face harsher penalties, with jail terms extending to five years.
To prevent misuse of financial channels, the Bill prohibits banks and other financial institutions from processing or transferring funds linked to online money games. However, it does not criminalise players themselves, treating them as “victims rather than perpetrators,” in order to avoid harassment.
At the same time, the legislation aims to boost India’s presence in the global gaming industry by granting formal recognition to eSports. Officials said this move will open opportunities for Indian startups, encourage innovation, and strengthen the country’s standing in international competitive gaming.
The Bill defines an “online money game” as any game played by paying money or stakes in expectation of winning monetary rewards, regardless of whether it involves skill, chance, or both. Online social games such as Candy Crush and competitive eSports are excluded from the ban.
The government has also proposed setting up a statutory regulatory authority to oversee the sector, with powers to determine whether a particular game qualifies as an online money game. The authority will also be responsible for platform registration and compliance monitoring.
The Cabinet-cleared Bill is expected to be tabled in Parliament on Wednesday. Officials said the move addresses growing concerns about financial losses, addiction, mental health issues, and cases of money laundering linked to online betting platforms.
