Cabinet Approves Bill to Ban Money-Based Online Gaming, Set to Be Tabled in Parliament

The Union Cabinet on Tuesday approved the proposed Promotion and Regulation of Online Gaming Bill, which aims to regulate the online gaming sector by distinguishing real-money games from eSports and online social games, sources said.

Provisions of the Online Gaming Bill

Online money games are defined as those in which users pay fees, stake money, or other valuables with the expectation of winning money or similar rewards, while eSports are explicitly excluded from this definition.

According to PTI, the measure prohibits online money gaming and related advertisements, but promotes eSports and online social games. The formal recognition of eSports is anticipated to connect India into the global competitive gaming ecosystem, drive innovation, provide chances for businesses and makes the country as a game development hub.

Sources highlighted concerns over the addictive nature of online games, particularly those involving money, and their potential impact on mental health.

Penalties for Online Money Games

According to the bill, anyone who violates its rules by providing online money gambling services faces up to three years in jail, a fine of up to Rs 1 crore, or both. Individuals promoting these games could face up to two years in prison, a fine of up to Rs 50 lakh, or both. Those engaged in similar financial operations can also be subject to similar penalties. The consequences for repeat offences are stricter, with fines and jail sentences of three to five years.

The bill targets those who promote or facilitate online money gaming while treating players as victims and not subjecting them to penalties. Banks and financial organisations are prohibited from handling or transferring payments for real-money online games.

According to PTI sources, the bill also proposes establishing a statutory regulatory authority to ensure oversight, compliance, and accountability. The regulatory authority will be empowered to decide if a game falls under the category of online money gaming after conducting an appropriate inquiry. The Cabinet cleared the bill yesterday, and it is expected to be tabled in Parliament on Wednesday.