By Anushka Rajvedi
The rising gaming industry in India received a shock from the government when the Union Cabinet cleared the ‘online gaming bill.’
The Union Cabinet proposed a bill for the money-based gaming industry during the parliamentary session on 19 August 2025. Probably being tabled on 20 August 2025, the bill, if passed, will be a huge blow for the industry that has been earning millions of dollars from foreign entities.
As per the draft of the proposed bill, any organisation promoting and contributing to money-based online gaming will face fines and imprisonment for up to three years as reported by PTI. The source stated that, “the bill proposed for action against the online gaming industry with involvement of real money has been approved by the centre. The bill is proposed to be taken forward by the parliament on August 20.”
In an interview with TOI, an official member of one of the top gaming companies of the country commented on this decision of the government. The official said, “ Up till the recent time, the government has been in discussions with the gaming companies and has been consulting them. However, this bill came unannounced to all of us, as there was no discussion regarding the same.”
A letter was written to the Union Minister Amit Shah by the All India Gaming Federation (AIGF) in regards to the loss that will be incurred for the bill proposed by the Indian IT ministry.
The Indian government cites the psychological effects these games have on the Indian masses and calls it ‘addiction’. The bill states that ‘money-related online games use algorithms that are addictive, along with manipulative designs. These promote behaviours that are compulsive and eventually result in financial ruin.’
The bill, once passed as a law, will deal not only with the promoters of such games but will also delve into fraud and addiction promoted by this sector, in the form of a fine and three years of imprisonment.