India proposes the Online Gaming Bill, targeting real money games to crack down on gambling

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Story Highlights

  • India introduces the Online Gaming Bill 2025, separating esports from real money games.
  • Esports officially recognized as competitive sport with support initiatives planned.
  • Real money games banned due to addiction and financial harm risks.

India has made a significant stride towards defining its gaming industry’s future. The Indian Government recently proposed the Online Gaming Promotion and Regulation Bill, 2025, in the Lower House of Parliament (Lok Sabha). This bill intends to provide formal recognition to esports and common video games, while setting firm boundaries against real-money gaming platforms and gambling applications.

Esports is officially recognized as a competitive sport, free from gambling elements

In the nation, there’s no ambiguity now about esports; it will officially be recognized as a sport. Esports refer to contests involving strategic team or individual play, decided by skill rather than chance, excluding any betting or gambling activities.

Alternatively, the proposed legislation adopts a firm position against games using actual money. These are games where players invest money or valuable items in anticipation of winning cash or prizes. Notably, applications such as fantasy cricket platforms, that have seen significant growth in popularity and financial backing over time, fall under this classification.

The government presented a bill known as “The Advancement and Administration of Digital Gaming Act, 2025” with the aim of encouraging innovation and safeguarding the well-being of its citizens in the realm of online gaming.

— IANS (@ians_india) August 20, 2025

The proposal aims to outlaw all forms of games where real money is involved, due to worries about addiction potential, financial hazards, and designs within the games that could trigger compulsive playing habits. However, rest assured that traditional video games and esports remain untouched, receiving continued support and expected growth. On the other hand, games involving real money are subject to a stringent ban.

Anyone found involved in offering or endorsing monetary games may face imprisonment for up to three years and substantial penalties. The Indian Government has already aimed to combat problematic gaming habits through setting limitations on time spent and money spent, and these new gambling restrictions are certainly significant steps forward.

Government plans to support esports growth with policies, training centers, and programs

This recognition is anticipated to significantly enhance esports in India, as government backing will facilitate the establishment of training facilities, research initiatives, and improved collaboration with local authorities. Several states have already been actively working towards these goals, such as Gujarat Government, Uttar Pradesh, and Madhya Pradesh, which have established their own Esports academies.

The government actively endorses online games, as demonstrated by its sponsorship of esports tournaments last year that included Battlegrounds Mobile India (BGMI), eFootball Mobile, and World Cricket Championship 3.

Last year during the Independence Day address, Prime Minister Narendra Modi motivated the nation to take the front line in the gaming sector. He also urged developers to produce games that would attract global audiences. Moreover, he had meetings with some of India’s most prominent game creators the previous year as well.

Just recently, Maharashtra revealed strategies for dealing with online gaming addiction, and it appears that the federal government may be following suit. The industry is currently estimated to be worth approximately $942 million by 2024, and predictions suggest it could reach $1.6 billion by 2029 – demonstrating its remarkable growth rate.

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2025-08-20 14:43