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Online Gaming Bill Sparks Uproar in Lok Sabha as Government Moves to Regulate Sector

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New Delhi: The government on Wednesday introduced the Promotion and Regulation of Online Gaming Bill, 2025 in Lok Sabha, triggering protests from Opposition benches.

The Bill, tabled by Electronics and Information Technology Minister Ashwini Vaishnaw, aims to establish a uniform national framework to oversee the fast-growing online gaming industry, including e-sports, educational games, and social gaming. It proposes the creation of a central authority to ensure policy coordination, regulatory oversight, and strategic development of the sector.

While the Bill seeks to promote innovation in digital entertainment, it also contains stringent provisions to prohibit online money games operating across state borders or from foreign jurisdictions. According to the draft, such activities pose risks to financial systems, public health, and national security.

The legislation emphasizes protecting vulnerable groups, especially young people, from psychological, social, and privacy-related harms associated with addictive or exploitative gaming models. It also seeks to ensure responsible use of digital technologies in the broader public interest.

Minister Vaishnaw reminded the House that the Centre’s digital policy aims to keep the internet “open, safe, trusted, and accountable.” He pointed out that the Finance Act, 2023, had already imposed a 30 percent income tax on net winnings from online games, effective from assessment year 2024-25, while GST on online gaming was raised to 28 percent from October 2023. Offshore suppliers of online money gaming platforms are also required to register under the IGST Act.

Despite its regulatory push, the Bill immediately sparked an uproar from the Opposition, which accused the government of rushing through legislation without adequate debate on its social and economic consequences.

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