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India bans real‑money online games: what the 2025 Bill means for apps, users & businesses
Parliament has cleared the Promotion & Regulation of Online Gaming Bill, 2025, which prohibits online games played with money, their advertisements and related financial transactions. Here’s a simple breakdown with actions you can take today.
2025
Online Gaming Bill
What changed?
All money‑based online games (stakes/entry fees/wagering) are banned nationwide. Ads and payment facilitation for such games are also prohibited.
What’s allowed?
Esports and non‑monetary skill games remain permitted. Playing regular video games without cash stakes is unaffected.
Who’s impacted?
Fantasy apps, rummy/poker for cash, and other real‑money platforms. Advertisers, payment partners, and app stores are also in scope.
What’s banned under the Bill?
- Operating or facilitating online games that involve monetary stakes (entry fees, wagering, or real‑money winnings).
- Advertising, promotion, and influencer endorsements for such games.
- Financial transactions (payments, settlements, wallet loads) related to real‑money gaming.
Penalties (operator & promoter)
- Up to 3 years imprisonment and/or ₹1 crore fine for operating prohibited games.
- Promoters/advertisers may face up to 2 years jail and fines up to ₹50 lakh.
- Payment partners knowingly facilitating such transactions can be penalised.
Timeline & status
August 21, 2025: Both Houses of Parliament pass the Promotion & Regulation of Online Gaming Bill, 2025. It awaits presidential assent to become law; this is generally a formality in India. Enforcement notifications typically follow soon after.
What’s not affected?
- Esports events and casual gaming without money.
- Gaming content, streaming, and coaching that don’t involve monetary stakes.
SMM panel owners: how to stay compliant
- Don’t sell or promote services for banned real‑money gaming apps or betting sites. Remove such categories from your catalog.
- Use RBI‑regulated payment gateways (Razorpay, PayU, Cashfree). Avoid unverified crypto/PN2PN methods.
- Publish clear Terms, Privacy Policy, and Disclaimer stating your services are for marketing only and not for gambling or illegal activity.
- Implement KYC/AML checks for large orders and monitor suspicious activity.
- Comply with the IT Rules, 2021 and the Digital Personal Data Protection Act, 2023 for user data.
- Keep transaction records and file applicable taxes (GST, IT).
Quick call‑outs
- Real‑money fantasy, rummy, poker, and similar cash‑stake games are in scope.
- Esports and non‑monetary skill games are not banned.
- Advertising and payments connected to banned games are also restricted.
FAQs
Is playing free games still allowed?
Yes. The ban targets money‑based games. Regular games without monetary stakes are fine.
What about apps that call themselves “skill‑based”?
Labels don’t matter if there’s money on the line. If entry fees or cash winnings are involved, they fall under the prohibition.
What actions should businesses take now?
Audit catalogues, halt ads for real‑money games, review contracts, and align payment flows with regulated gateways. Publish clear compliance statements.
Action checklist (for operators & partners)
- Cease operations and ads for real‑money games in India.
- Notify users and partners; issue refunds where contractually required.
- Geoblock India if your platform primarily serves real‑money games.
- Consult counsel on data retention, taxation, and employee transitions.
Sources & further reading
- Reuters – India passes bill banning money‑based online games (Aug 21, 2025)
- Times of India – Online Gaming Bill 2025 explained (Aug 21, 2025)
- NDTV – Bill clears Parliament; penalties overview (Aug 21, 2025)
- Indian Express – Provisions & penalties; enforcement contours (Aug 21, 2025)
- Economic Times – Industry impact and advertising implications (Aug 20–21, 2025)