Lok Sabha Bans Real-Money Gaming, Boosts Esports
The Lok Sabha on August 20, 2025, passed the Promotion and Regulation of Online Gaming Bill, 2025. The legislation bans all real-money online gaming, including those based on skill, chance, or a mix of both. At the same time, it formally recognizes and promotes esports, separating it from gambling-related activities.
Key Provisions of the Bill
The law prohibits the offering, facilitation, or advertisement of online games involving cash or stakes. Payment gateways and banks are directed not to process transactions for such platforms. However, esports and social or educational games will be encouraged under a regulated framework. A new National e-Sports Authority will be established to oversee tournaments and ensure compliance.
Industry Concerns Over Revenue Loss
Several gaming associations have raised concerns about the ban, estimating that the government could lose up to ₹20,000 crore in annual tax revenue from the real-money gaming industry. They warn that the move could push players towards offshore or unregulated operators, creating risks of fraud, illegal betting, and misuse of user data.
Esports Industry Welcomes the Move
The esports sector has welcomed the bill, saying it will bring legitimacy and growth opportunities for Indian players. Industry leaders believe the recognition will boost investments, infrastructure, and global participation for Indian esports athletes.
