India to Ban Online Money Games, Citing Addiction Risks

A new bill set for Parliament aims to prohibit real-money gaming, citing rising addiction and mental health issues among young users.

The Indian government is set to introduce a new bill in Parliament on Wednesday that would outlaw online money games. The proposed legislation, driven by the Ministry of Electronics and Information Technology (MeitY), aims to curb widespread addiction and address serious mental health concerns, particularly among children and young adults, linked to these popular platforms.

Why the Ban is Being Proposed

The government is taking this step in response to growing evidence of the negative impact of real-money gaming. The draft "Promotion and Regulation of Online Gaming Bill, 2025," specifically targets games where users pay money for a chance at a higher financial payout.

According to MeitY, the decision is backed by troubling data. "The immersive and addictive nature of online games, particularly with monetary incentives, has led to significant mental health issues among users," the ministry stated in the draft law. It added that "clinical evidence and field studies have shown a rise in anxiety, depression, sleep disorders, and behavioral problems linked to prolonged gaming."

Under the proposed law, anyone caught offering these games could face severe consequences, including up to three years in prison and a fine of up to Rs 1 crore. Promoting or advertising these platforms would also become a criminal offense.

Impact on the Gaming Market

This proposed federal ban would be a major disruption for India's booming real-money gaming industry. Companies like Dream11 and Mobile Premier League, which have gained immense popularity through high-profile marketing campaigns featuring top cricketers, would see their core business models outlawed. The legislation aims to create a uniform policy, ending the current patchwork of state-level rules.

ALSO READ Loan App Dangers: 5 Tips to Borrow Safely

Currently, India has no single federal law governing online gaming. This has led different states to adopt their own approaches. While states like Tamil Nadu and Karnataka have already banned online money games, others such as Sikkim and Nagaland have opted for regulation, requiring operators to register with the government. This new bill represents a decisive move to create a nationwide standard.

ALSO READ Personal Loan Agreement 3 Checks Before You Sign

The bill will be tabled in Parliament this week, where it will be debated by lawmakers. If passed, it will mark a significant policy shift, prioritizing public health concerns over the rapidly growing online gaming industry. The move will likely face strong opposition from gaming companies and industry bodies, who will argue for regulation instead of an outright prohibition.