Lok Sabha clears Gaming Bill, celebrity Ads on RMG may invite prison and crores in fines
Banks or intermediaries found facilitating money transfers to such platforms could face the same punishment as operators: up to three years imprisonment, fines of ₹1 crore, or both.
ADVERTISEMENT
The Union Government’s Promotion and Regulation of Online Gaming Bill, 2025 has introduced some of the harshest penalties yet for violations linked to online money gaming, advertisements, and financial transactions. The Bill, tabled in the Lok Sabha by Minister Ashwini Vaishnaw, outlines sweeping punishments aimed at curbing what it calls the “deleterious social, financial and psychological harms” caused by money gaming platforms.
Under the proposed law, offering or operating online real money gaming services will attract up to three years of imprisonment, a fine extending to ₹1 crore, or both. Even stronger action is reserved for repeat offenders, who face a minimum of three years and up to five years in jail, along with fines between ₹1 crore and ₹2 crore.
The legislation also takes direct aim at advertising. Publishing or promoting advertisements related to online money games could lead to two years in prison or fines up to ₹50 lakh, with repeated violations escalating penalties to a minimum of two years and up to three years in prison, plus fines ranging from ₹50 lakh to ₹1 crore.
Financial institutions are not spared either. Banks or intermediaries found facilitating money transfers to such platforms could face the same punishment as operators: up to three years imprisonment, fines of ₹1 crore, or both.
In a significant move, the Bill makes offences under Sections 5 and 7 — relating to offering money games and fund transfers — cognizable and non-bailable, ensuring immediate arrest and denial of bail for accused persons. Authorities will also have powers to search, seize, and arrest without warrant, extending even into digital spaces such as servers, virtual accounts, and electronic devices.
The draft law introduces accountability for companies, making directors, managers, and officers personally liable if offences occur under their watch. While independent and non-executive directors are shielded, executives in control of operations could face prosecution for corporate violations.
Additionally, failure to comply with orders from the Central Government or the proposed Gaming Authority could result in penalties up to ₹10 lakh, suspension of licenses, and a ban from offering gaming services.
The Bill further empowers the Government to block access to any gaming platforms found in violation, under provisions aligned with the Information Technology Act, 2000.
The government has justified these sweeping punishments by citing links between money gaming platforms and financial fraud, money laundering, and even terror financing, alongside concerns about youth addiction and financial distress.
If passed, the legislation would set one of the most rigorous penalty frameworks for online gaming globally, underscoring India’s intent to treat online money gaming as a grave socio-economic threat rather than just a regulatory concern.
