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Union Government Set to Ban All Financial Transactions Related to Online Gaming: Bill to Be Introduced in Parliament

By Pavitra Ganapathi Baradavalli
Union Government Set to Ban All Financial Transactions Related to Online Gaming: Bill to Be Introduced in Parliament

The Union Government is preparing to introduce the "Online Gaming Promotion and Regulation Bill, 2025" in Parliament with the aim of banning all financial transactions related to online gaming. The Union Cabinet granted approval for this bill on August 19, 2025, and it is likely to be presented in the Lok Sabha on Wednesday (August 20, 2025).

New Delhi: The Union Government is preparing to introduce the "Online Gaming Promotion and Regulation Bill, 2025" in Parliament with the aim of banning all financial transactions related to online gaming. The Union Cabinet granted approval for this bill on August 19, 2025, and it is likely to be presented in the Lok Sabha on Wednesday (August 20, 2025). The bill declares offering, facilitating, promoting, or advertising real-money-based online gaming services as a criminal offense. Violators of these regulations could face imprisonment of up to three years, a fine of up to one crore rupees, or both. Repeat offenders may face jail terms ranging from three to five years along with higher fines. The bill stipulates that banks, financial institutions, or any intermediaries shall not permit any financial transactions related to real-money online gaming.read also: Udupi MP Kota Srinivas Poojary Writes Letter Urging ED Probe into Foreign Involvement in Dharmasthala Case: Here Are the Details


This means that any form of monetary transfer, digital wallets, or bank transactions for online gaming will be prohibited. The bill aims to promote eSports and social online games, distinguishing them from real-money gaming. By granting formal recognition to eSports, the legislation intends to position India as a major player in the global gaming landscape and create opportunities for Indian startups. However, real-money-based games such as fantasy sports, rummy, and poker will be completely banned. This ban is expected to deliver a significant blow to gaming companies like Dream11, PokerBaazi, Games24x7, and the Mobile Premier League. The Union Government has cited several reasons for implementing this ban. It highlights that online gaming leads to addiction, mental health issues, financial losses, money laundering, cybercrimes, and potential threats to national security.read also: Delhi Chief Minister Rekha Gupta was allegedly attacked during a 'Jan Sunwai': here is the info

The government has identified that these games pose serious social and economic problems, particularly for youth and economically disadvantaged groups. Experts warn that this bill will have a severe impact on India's online gaming industry. The sector, which employs approximately 200,000 people, could result in an annual tax revenue loss of around 20,000 crore rupees for the government, according to industry leaders. Gaming companies argue that this blanket ban might drive Indian users toward unregulated foreign betting platforms, increasing the risk of fraud, addiction, and a lack of consumer protection. Organizations such as the All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and Federation of Indian Fantasy Sports (FIFS) have submitted petitions against the ban to Home Minister Amit Shah. The bill proposes the establishment of a constitutional regulatory authority for online gaming, which will have the power to investigate whether games are based on real money and make determinations.read also: RSS Chief Mohan Bhagwat Responds to Kalli Purie’s Remarks on Women’s Representation: What Was the Remark? Here Are the Details


This authority will also mandate registration and legal compliance for gaming platforms. This legislation is poised to bring about a historic transformation in the online gaming industry. By promoting eSports and curbing real-money gaming, the law aims to address social and economic challenges. However, experts caution that this move could have a profound impact on the industry’s economy.JUNEBERRY® 100% Pure Cotton Oversized Loose Fit Half Sleeve Drop Shoulder Solid Core Round Neck Multicolor T-Shirt Combo for Women (Pack of 4) (Colors: Black, White, Swanwhite, Brown, Lilac & Maroon)