Retailers that sell games rated 12 or over to younger children could be jailed.
The decision comes as part of today's new Government process to have the pan-European PEGI ratings become law.
It will add further power to the PEGI ratings, which are being made the sole classification for video games, ditching the BBFC logos.
Creative Industries Minister Ed Vaizey said: “The new system will benefit both parents and industry by creating a stronger, simpler age-rating system.
“It will give parents greater confidence that their children can only get suitable games while we are creating a simpler system for industry having their games age-rated.”