• The government moved a legislation in the Lok Sabha to regulate online games played with money as it looks to check rising instances of addiction, money laundering, and financial frauds through such applications.

• It aims to protect people from the adverse social, economic, psychological and privacy-related impacts of such games and to ensure the responsible use of digital technologies.

• The Promotion and Regulation of Online Gaming Bill, 2025 also seeks to prohibit advertisement related to online money games as well as bars banks and financial institutions from facilitating or transferring funds for any of such games.

• An online money game is played by a user by paying fees, depositing money or other stakes in expectation of winning which entails monetary and other enrichment in return of money or other stakes.

• Union Minister Ashwini Vaishnaw introduced the Bill in the Lok Sabha on August 20.

Why the govt brings in new Bil?

• The unprecedented expansion of information and communication technologies in recent years has resulted in the emergence of new forms of digital entertainment and competitive participation, most prominently in the form of online gaming. 

• These activities have become an important means of engagement for the youth of the country.

• The online gaming sector has emerged as one of the fastest-growing components of the creative economy, contributing significantly to innovation, employment generation and export earnings. 

• India possesses a large pool of skilled young professionals, strong technological capabilities and a rapidly growing domestic market, which together provide an opportunity for the country to assume a leadership role in the global value chain of online gaming.

• At present, the online gaming sector ecosystem has multiple segments. 

• The sector operates without a dedicated institutional mechanism for strategic support, co-ordination and capacity building.

• The absence of an enabling legal framework has adversely impacted the sector’s assured growth, development of common infrastructure, provision of specialised training and research in emerging technologies in the sector. 

• Therefore, there is an urgent need to establish a structured mechanism for policy formulation, stakeholder engagement and facilitation of development of the sector in a transparent and coherent manner.

• Parallelly, the unchecked and widespread proliferation of online money games which are readily accessible through mobile devices, computers, and the internet, and offering monetary returns in exchange for deposited funds has led to grave social, economic, and psychological consequences across the country. 

• These platforms often promote compulsive and addictive behaviour, resulting in financial ruin, mental health disorders, and increasing incidents of fraud and exploitation.

• A significant number of young persons and economically vulnerable individuals have been adversely impacted by the seamless availability of these games, driven by the low cost of internet access, the ubiquity of mobile and computing devices, and the ease of app-based participation. 

• This problem is further exacerbated by aggressive promotional campaigns, including the use of celebrity endorsements, which enhance the appeal and reach of such platforms.

• The algorithms used in online money games are often opaque and may be designed to manipulate user engagement surreptitiously. These games can also be operated by bots or undisclosed agents, undermining fairness and transparency.

• Reports and studies, both national and international, have highlighted the strong association between such games and compulsive behaviours, psychological distress, financial hardship, and the disruption of family and social life, thereby posing a serious public health risk.

• Beyond the individual, the proliferation of online money games had deleterious effects on families, society, and the economy. In certain cases, these platforms have been linked to illegal activities including money-laundering, financial fraud, the financing of terrorism, and use as messaging platform for terrorist and terrorist organisations, thereby affecting the security and sovereignty of the State.

• A plethora of online money gaming service providers operating from offshore locations often circumvent state-specific regulations, evade taxation, and create enforcement challenges pertaining to extra-territorial concerns for domestic authorities and has raised complex challenges with respect to user safety, consumer protection, cross-border operations, and inter-State regulatory inconsistencies. 

• The Bill proposes to establish a robust legal framework, not only prohibit online money gaming in the country but also to regulate, promote and encourage the sector for innovation and economic growth and ensure a developed, safe and responsible digital environment for all citizens.