SYLLABUS

GS-2: Parliament and State legislatures—structure, functioning, conduct of business, powers & privileges and issues arising out of these.

Context: Recently, Parliament has passed the Promotion and Regulation of Online Gaming Bill, 2025.

More on the News

• The Bill was introduced in the Lok Sabha on August 20, 2025, where it was passed the same day and subsequently cleared by the Rajya Sabha on August 21, 2025.
• The Bill seeks to prohibit online money games and promote and regulate certain other online games.

Key provision of the Bill

Prohibition on online money games

• The Bill also prohibits advertising and facilitating financial transactions for such games.  
• It empowers the central government to block any information related to online money gaming services from public access.

Promotion of e-sports

• The Bill empowers the central government to take steps for recognition and development of e-sports and online social games.

The central government may: 

• create a mechanism for registration of e-sports and online social games, 
• specify guidelines for conducting e-sports events, 
• establish training academies for e-sports, 
• incentivise promotion of e-sport technology platforms, and 
• support initiatives that increase public access to safe social gaming content.

About an online money game

• It is defined as an online game that involves a user paying money or other stakes in expectation of receiving monetary or other enrichment.  
• This is irrespective of whether the game is based on skill, chance or both. 
• “Online money gaming service” means a service offered by a person for entering or playing the online money game.

About E-sport

It is defined as an online game: 

• Played as part of multi-sports events. 
• Recognised under the National Sports Governance Act, 2025, 
• It has an outcome determined solely by factors such as physical dexterity, mental agility, strategic thinking, or similar skills.
• It involves organised competitive events conducted in multiplayer format and governed by pre-defined rules.  It may involve payment of registration fees and prize money. 

About the online social game

• It means an online game offered solely for recreation, entertainment or skill development.  
• It may involve payment of subscription or one-time access fees but must not involve any stakes or monetary gains in return of stakes.

Authority on Online Gaming

The central government may constitute an Authority with powers to: 

• Determine whether an online game qualifies as an online money game.
• recognise, categorise and register online games.  

Search and arrest without a warrant

• The Bill empowers authorised officers to enter and search any place without a warrant.  
• They may also arrest a suspect found during the search without a warrant.

Offences and penalties

• Offering online money gaming services will be punishable with imprisonment for up to three years, a fine up to one crore rupees, or both.  
• Advertising online money games will be punishable with imprisonment up to two years, a fine up to Rs 50 lakh, or both.  
• Facilitating financial transactions for such services will be punishable with imprisonment up to three years, a fine up to one crore rupees, or both.  
• The Bill specifies that offences of offering online gaming services and facilitating financial transactions for such games will be cognisable and non-bailable.

Significances of the Bill:

• Curbing Social and Financial Harms: By banning Real Money Games (RMGs), the law seeks to prevent financial exploitation, addiction and social distress that have reportedly destroyed families and caused severe economic hardships.
• Strengthening Consumer Protection and Governance: The law ensures strict government regulation instead of self-regulation by gaming companies, thereby safeguarding users against malpractices and frauds similar to chit fund scams.
• Encouraging Safe and Regulated Alternatives: While prohibiting RMGs, the government promotes e-sports and skill-based gaming under regulated frameworks, balancing innovation in digital gaming with public welfare.

Source: 

https://indianexpress.com/article/india/lok-sabha-passes-bill-to-ban-online-games-involving-monetary-enrichment-10201121/ https://prsindia.org/billtrack/the-promotion-and-regulation-of-online-gaming-bill-2025 https://www.livemint.com/news/india/parliament-live-updates-monsoon-session-latest-news-lok-sabha-online-gaming-bill-rajya-sabha-21-august-2025-11755750546130.html