Categories: India

Why India Wants to Outlaw Online Gaming After ₹20,000 Crore Annual Losses?

The Online Gaming Ban in India 2025 targets platforms, not players, with strict penalties for providers and focus on public safety.

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The Online Gaming Ban in India 2025 has sparked a major debate. Government data shows that at least 45 crore Indians lose nearly Rs 20,000 crore every year to online gaming. The government believes that money-based gaming is becoming a serious social issue. It has moved a new bill to ban such platforms, citing addiction, suicides, and growing financial losses. The move aims to prioritize public health, mental well-being, and social safety while putting responsibility on operators rather than players.

The Scope of the Problem

A government source said that money-based online gaming has now become a “major problem for society.” Every year, nearly 45 crore people lose money, and the total loss adds up to about Rs 20,000 crore. The Ministry of Electronics and Information Technology (MeitY) has warned that these games are highly addictive and are creating serious mental health issues. Children, teenagers, and young adults are most at risk, often facing stress, debt, and emotional problems because of them.

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The Draft Bill and Its Provisions

The draft law, known as the Promotion and Regulation of Online Gaming Bill, 2025, proposes strict bans on money gaming. It prohibits platforms where users pay real money for the promise of higher monetary returns. Offenders who run or enable such games may face up to three years in prison, a fine of up to Rs 1 crore, or both. Repeat violations will attract even harsher penalties. 

Advertising or promoting these gaming platforms is also illegal, and it can result in up to two years in jail, a fine of Rs 50 lakh, or both.

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Players as Victims, Platforms as Targets

The government has clarified that the law is not aimed at punishing players. Instead, it sees them as victims of a predatory system. Action will be taken against providers of real-money gaming platforms, those who facilitate payment transactions, and those who promote such services. The clear objective is to regulate operators and protect users from exploitation.

Online Gaming and State-Level Rules

Online gaming in India ranges from casual mobile apps to fantasy sports and poker platforms. However, the absence of a federal law has left states to act on their own. Tamil Nadu, Karnataka, and Andhra Pradesh have already banned online money games. In contrast, states like Sikkim and Nagaland allow operations but require mandatory registration with the state government also this uneven system highlights the need for a national law.

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A Step Toward Safer Digital Spaces

The new bill shows a big change in how India plans to deal with online gaming. Instead of punishing the players, the government wants to hold the companies and operators accountable. The goal is to reduce addiction and financial losses without blaming those already affected. It also highlights the growing concern around mental health problems linked to gaming.