New Delhi, August 20: The Prime Minister Narendra Modi-led Union Cabinet on Tuesday approved the Online Gaming Bill 2025, aimed at bringing regulatory clarity to online betting and real-money gaming platforms. The Bill, cleared amid a surge in fraud cases and rising concerns over gaming addiction, is expected to be tabled in the Lok Sabha on Wednesday. According to government sources, the proposed law will introduce a strict framework to regulate online betting applications, impose penalties on violators, and curb financial transactions linked to gambling platforms. It also comes at a time when the Centre is planning to levy a steep 40% GST on online gaming revenues, possibly by Diwali.

The Bill is seen as the government’s attempt to tackle the unchecked rise of real-money gaming in India, which has grown alongside increasing celebrity endorsements and high-profile promotional campaigns. Investigating agencies have already stepped up scrutiny against such endorsements, citing their role in normalizing gambling-like activities among youth. If passed, the legislation could significantly impact industry leaders like Dream11, MPL, RummyCircle, and Pokerbaazi, all of whom have built their businesses around money-based formats. Online Gaming Bill 2025 To Trigger Layoffs and Company Closures? Gaming Industry Warns of Over 2 Lakh Job Losses, Urges Amit Shah to Review Draft Legislation.

What Is Online Gaming Bill 2025?

The Online Gaming Bill 2025 seeks to define and regulate online games involving real money, regardless of whether they are based on chance or skill. This marks a major shift, as India’s courts have historically distinguished between games of skill (like rummy or fantasy sports) and gambling. The Bill proposes to designate the Ministry of Electronics and Information Technology (MeitY) as the central regulator, empowering it to block apps, restrict advertisements, and prevent banks or financial institutions from processing related transactions. Online Gaming Bill 2025: Bill to Promote and Regulate Online Gaming Sector Likely to Be Introduced in Lok Sabha Today.

Key provisions reportedly include penalties for promoting betting apps, prohibitions on financial dealings with such platforms, and a broad definition of online gaming that could potentially subsume all real-money games. By targeting the sector comprehensively, the Bill could alter the trajectory of India’s booming gaming market, currently valued at USD 3.7 billion and projected to more than double by 2029. However, since nearly 86% of the industry’s revenue depends on real-money formats, the law could effectively dismantle the existing business model.

Why Online Gaming Bill 2025 Is Seeing Opposition From the Industry?

Industry leaders and gaming associations have strongly opposed the proposed legislation, warning that it would deliver a “death knell” to India’s sunrise skill-gaming sector. They argue that online skill gaming is a legitimate business with an enterprise valuation of over INR 2 lakh crore, generating annual revenues of INR 31,000 crore and contributing more than INR 20,000 crore in taxes. The sector, which employs thousands of engineers, content creators, and entrepreneurs, has been growing at 20% CAGR and attracting significant foreign investment, with FDI surpassing INR 25,000 crore by mid-2022.

The industry cautions that a blanket ban would not only destroy jobs and startups but also drive crores of players toward illegal matka operators and offshore betting websites, which operate without consumer protections, taxation, or oversight. Such a shift, they warn, would fuel fraud, exploitation, and even national security risks. Stakeholders have urged the government to reconsider and adopt a balanced regulatory framework that distinguishes between skill-based platforms and pure gambling, instead of imposing sweeping prohibitions.

(The above story first appeared on LatestLY on Aug 20, 2025 11:04 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).