India’s Lok Sabha, the lower house of Parliament, has passed the Promotion and Regulation of Online Gaming Bill, 2025, introducing a nationwide framework for the sector that bans real-money gaming while formally recognising esports.
The Bill prohibits online money games such as poker, rummy, fantasy sports, and betting apps, along with their advertisements and financial transactions. Banks and payment intermediaries will be barred from processing related payments. Penalties include jail terms of up to three years and fines for offering such games.
At the same time, esports has been recognised as a competitive sport, with government plans to set up training academies, research centres, and technology platforms under the Ministry of Youth Affairs and Sports. Social and educational games will also be encouraged, with safeguards for age-appropriate content.
The announcement comes at a moment of growth for the Indian esports market, with international organisers such as the Esports World Cup and BLAST strengthening their presence in the country.
A new central authority will be created to oversee compliance. Authorities will have powers to investigate, search, and block non-compliant platforms under the IT Act, 2000.
Union IT Minister Ashwini Vaishnaw said the Bill aims to support esports and casual games while protecting families from the harm caused by money gaming.
The legislation has already affected listed firms, with shares in Nazara Technologies falling over 6% and OnMobile down nearly 3% on 20 August.
The Bill will now be taken up in the Rajya Sabha, the upper house of Parliament, before it proceeds for Presidential assent.
Update: Rajya Sabha has also passed the Bill on 21 August.
