India to outlaw online money games, govt nod cites suicides, addiction reasons

The government will table a legislation to ban online money gaming in the Parliament on Wednesday, after users, especially children and young adults, were found to be addicted to such platforms.

The draft law of the Promotion and Regulation of Online Gaming Bill, 2025, proposes to prohibit platforms or games where users pay money in exchange for higher monetary returns.

The Ministry of Electronics and Information Technology (MeitY) said, “The immersive and addictive nature of online games, particularly with monetary incentives, has led to significant mental health issues among users — especially children, adolescents and young adults.”

“Clinical evidence and field studies have shown a rise in anxiety, depression, sleep disorders, and behavioural problems linked to prolonged gaming,” the ministry added in the draft law.

Anyone caught offering or enabling online money games may face up to three years in prison, a fine of up to Rs 1 crore, or both. Repeat violations carry stricter mandatory penalties. Promoting or advertising these platforms is also a criminal offence, punishable by up to two years of imprisonment, a fine of up to Rs 50 lakh, or both.

Online gaming spans a wide range, from casual mobile games and educational apps to real-money fantasy sports and poker platforms. Several states have focused on the latter, invoking their constitutional power to regulate gambling and betting.

Endorsements by top Indian cricketers and other marketing efforts have boosted the appeal and investor interest of real money gaming apps such as the popular fantasy cricket games operated by startups Dream11 and Mobile Premier League.

India currently does not have a federal legislation to regulate online gaming. However, some states have rules of their own, like those of Tamil Nadu, Karnataka and Andhra Pradesh, which have banned online gaming. While states like Sikkim and Nagaland have made it mandatory for operators to register themselves with the government before making their platforms live.