The Lok Sabha on Wednesday (August 20) passed The Promotion and Regulation of Online Gaming Bill, 2025, banning money-based online gaming, in just seven minutes through a voice vote and without any debate. The bill was passed amid loud opposition protests.

Union Electronics and IT Minister Ashwini Vaishnaw introduced the legislation at noon, a day after it was cleared by the Union cabinet on August 19 and hurriedly added to the revised list of business later that night.

When the House reconvened at 5 p.m., following an adjournment after Union Home Minister Amit Shah introduced three controversial bills granting the Centre powers to remove chief ministers or cabinet ministers detained in jail for 30 days, Vaishnaw made a brief intervention. Within minutes, the bill was passed by voice vote before the House was adjourned for the day.

According to the statement of objects and reasons, the legislation seeks to establish a comprehensive legal framework not only to prohibit online money gaming in India but also to regulate and promote the wider gaming sector, with an emphasis on innovation, economic growth and creating a safe and responsible digital environment.

Explaining the rationale, Vaishnaw told the House that online gaming had grown into a significant segment of the technology sector, spanning e-sports, social games and online money games.

“As you mentioned that many families lose their life’s earnings in online games due to addiction. Financial losses have become rampant, there have been suicides, families have been destroyed,” he said.

He added that money laundering and even terror financing were being facilitated through such platforms.

The bill notes that the “unchecked expansion of online money gaming services has been linked to unlawful activities including financial fraud, money-laundering, tax evasion, and in some cases, the financing of terrorism, thereby posing threats to national security, public order and the integrity of the State.”

Vaishnaw said the government intended to encourage e-sports and online social games, but added: “This bill gives primacy to society’s welfare and to protect from this harm that has come to society.”

The proposed law defines an online game as one played by paying a fee, depositing money or other stakes in expectation of winning, whether based on skill, chance, or both, resulting in monetary or material gain. E-sports are exempted.

It further defines “online money gaming service” as a service enabling participation in such games.

The bill provides for imprisonment of up to three years, or a fine of up to Rs 1 crore, or both, for those offering prohibited gaming services. Advertising such games would invite punishment of up to two years in jail or a fine of Rs 50 lakh.

The legislation also mandates the creation of an authority with suo motu powers to determine whether a game qualifies as an online money game.

It grants sweeping investigative powers to designated officials, who may be authorised by the Union or state governments to act under the law. These powers include entering physical or digital premises, conducting searches and making arrests without warrant if a person is suspected of committing or about to commit an offence under the Act.

Importantly, the law extends its provisions not just to operators within India but also to online gaming services functioning from abroad.