Historic Legislation Passed in Record Time
Parliament has passed India’s first federal law banning online money gaming, pushing through the Promotion and Regulation of Online Gaming Bill, 2025 in unprecedented speed. The Lok Sabha cleared the bill in just seven minutes, followed by the Rajya Sabha’s approval in 26 minutes through a voice vote on Thursday. Despite loud protests from opposition parties demanding more time for debate, the legislation was adopted without substantive discussion.
The bill’s swift passage has sparked a major political storm, with opposition leaders accusing the government of undermining parliamentary scrutiny. Congress president Mallikarjun Kharge strongly objected, alleging that the government had “snatched away” the right to debate on an issue that directly affects millions of Indians. On the other side, Parliamentary Affairs Minister Kiren Rijiju countered that the opposition had stalled proceedings for most of the monsoon session, leaving no room for cooperation.
A Strict Ban with Harsh Penalties
The newly passed law imposes one of the world’s toughest bans on online money-based gaming. It completely prohibits platforms that facilitate betting or wagering, regardless of whether the games are based on skill or chance.
Key provisions include:
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Imprisonment of up to three years and fines up to ₹1 crore for operators or facilitators of such platforms.
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Two years in jail and fines up to ₹50 lakh for those advertising or promoting online betting services.
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Establishment of a central regulatory authority to classify games, direct compliance, and recommend blocking of illegal platforms under the Information Technology Act.
Union Electronics and IT Minister Ashwini Vaishnaw defended the bill, likening online money gaming addiction to drug abuse. He cited government estimates that more than 450 million players have collectively lost ₹20,000 crore to these platforms. “From time to time, society faces social evils. It is the duty of the government and Parliament to act firmly against them,” Vaishnaw told the Rajya Sabha.
Opposition Push for State Powers Rejected
The bill faced 21 proposed amendments, mainly from Communist Party of India (Marxist) MPs, who argued that states must share regulatory powers with the Centre. John Brittas of CPI(M) also called for the bill to be sent to a select committee for deeper examination. Both demands were rejected via voice votes.
The amendments would have ensured that state gambling laws continued to hold sway, while also giving state governments authority to investigate offences linked to online money gaming. However, several proposed changes could not even be taken up as MPs were absent during voting.
Currently, states like Tamil Nadu and Karnataka have already enacted blanket bans, while others such as Sikkim and Nagaland issue licenses to operators. The new law seeks to end this patchwork approach by introducing a uniform nationwide prohibition.
A Major Blow to India’s Gaming Industry
The ban has sent shockwaves across India’s rapidly growing digital gaming sector, valued at nearly ₹31,000 crore. Industry bodies warn that the law could dismantle legitimate domestic companies while unintentionally giving offshore operators an advantage.
The sector currently employs over 200,000 people and has attracted more than ₹25,000 crore in foreign investment since 2022. Industry representatives described the ban as a “death knell” for businesses that have operated under state licensing regimes and complied with taxation norms.
The legislation makes no exception for skill-based formats, meaning fantasy sports platforms like Dream11, real-money rummy portals, and prize-based mobile games now fall under the prohibited category. However, it does explicitly recognize e-Sports as a legitimate form of competition, separating it from money gaming.
Enforcement Already Underway
The government has already begun cracking down on illegal online betting. The Enforcement Directorate is investigating several celebrities for endorsing betting platforms. Authorities have also blocked 357 offshore websites and frozen assets worth ₹126 crore linked to online gaming fraud.
Once the President grants assent, the law will formally come into effect. The central regulator will then issue compliance guidelines and oversee the blocking of violative apps and websites.
Conclusion
India’s first federal ban on online money gaming represents a decisive step against a sector seen by the government as socially harmful. Yet, the absence of parliamentary debate, the sidelining of state powers, and the economic implications for a booming industry ensure that the controversy around this legislation will continue well beyond its enactment.
