Gamers on a losing bet: Lok Sabha passes bill for blanket ban on money gaming

New Delhi: The Lok Sabha passed the online gaming bill a day after the cabinet approved it, as the government fast-tracks it through the Parliament before the current session ends on Thursday.

The Promotion and Regulation of Online Gaming Bill bans all online games with a monetary aspect, pointing to their toll on society. The contention is that such games lead to suicides due to heavy financial losses, as well as to addiction among children and youngsters.

Online gaming companies have protested that they were blindsided by the bill's proposal to impose a blanket ban, arguing that this threatens their viability, will lead to mass layoffs and wipe out investments.


The bill requires Rajya Sabha approval and presidential assent before it becomes law. The Centre plans to present the bill in the Upper House and get it approved before the session ends. Introducing the bill in the Lower House on Wednesday, minister for electronics and IT Ashwani Vaishnaw said the World Health Organization (WHO) has linked online money games to compulsive behaviour, psychological distress, financial hardship and disruption of family life. "They have declared it a new online gaming disorder," he said.

Citing a recent news report from Karnataka on the suicide of 32 gamers in 31 months, Vaishnaw said online gaming addiction has pushed many Indians into staking their life savings.

Panic in industry, among gamers

But the odds are stacked against participants, as the games are run on the basis of opaque algorithms, he noted.

“The algorithms are such that it can't be deduced who the player is playing against, and you can't win,” the minister added.

Security agencies have determined that money gaming payment channels are being misused for money laundering and terror financing, said Vaishnaw.

The bill has shaken the ₹27,400-crore online money gaming sector, representatives of which have warned of job losses and an impact on government revenues.

Stocks of listed gaming companies slumped and panicked gamers are said to be scrambling to get their money out of online wallets.

Under the proposed law, running real money games or facilitating fund transactions is punishable with jail time of up to three years and fines of as much ₹1 crore, or both. The police will implement these provisions.

Karnataka IT minister Priyank Kharge posted on X that the bill will have disastrous effects on the industry and jobs, given that gaming startups number more than 2,000.

He added that India earns ₹20,000 crore of goods and services tax (GST) and income tax from real money games.

The Centre wants to prioritise societal health over the cost to the exchequer, Vaishnaw told Parliament.

Critics have also argued that India's gaming talent pool will be pushed to look overseas for options.

The minister, however, pointed out that the bill has chosen to categorise the mobile gaming ecosystem into three distinct parts — real money games, e-sports and social gaming. The first is being banned, while the latter two will be promoted in a systematic manner, he said.