Hyderabad: On August 21, Parliament passed the Promotion and Regulation of Online Gaming Bill, 2025, a step taken to regulate its rapidly growing online gaming sector. The legislation introduces a complete ban on online money games. At the same time, it promotes e-sports and educational gaming platforms.
What is the government’s argument behind the new legislation?
According to Union Minister for Electronics and Information Technology Ashwini Vaishnaw, approximately 450 million Indians have been negatively affected by online money games, suffering collective losses exceeding Rs 20,000 crores.
These platforms have been linked to addiction, family bankruptcies and, in tragic cases, suicides among players who lost their life savings chasing false promises of quick wealth.
The other argument is the World Health Organisation’s (WHO) classification of gaming disorder as a health condition, underscoring the global nature of this crisis. The condition is characterised by loss of control over gaming, neglect of daily activities and continued play despite harmful consequences.
How does the new law recognise segments within India’s online gaming landscape?
E-Sports: Competitive digital sports involving organised tournaments that require strategy, coordination and advanced decision-making skills. These will receive government recognition and support.
Online Social Games: Casual, skill-based games designed for entertainment, learning or social interaction. These are considered safe and will be actively promoted through dedicated government platforms.
Online Money Games: Games involving financial stakes, whether based on chance, skill, or both. These are now completely banned due to their association with addiction, financial ruin, and criminal activities, including money laundering and terror financing.
What will be the framework for legitimate gaming?
The bill establishes a comprehensive framework to nurture legitimate gaming through a three-pronged approach.
The Ministry of Youth Affairs and Sports will develop guidelines for e-sports tournaments while establishing training academies, research centres and technology platforms to support competitive gaming.
Simultaneously, the Central Government gains powers to recognise and register safe, age-appropriate social games focusing on education, culture and skills development. To support industry growth, dedicated platforms will distribute approved content while awareness campaigns promote digital literacy, creating an ecosystem that fosters innovation while ensuring user safety.
Prohibition measures for online money games
The legislation takes a zero-tolerance approach to online money games through comprehensive restrictions.
All online money games are completely prohibited, regardless of whether they involve chance, skill, or both, while the promotion and advertising of such games is strictly forbidden. To enforce these restrictions, banks and payment systems are barred from processing any transactions related to these platforms, creating a financial blockade that cuts off revenue streams.
Additionally, authorities are empowered to block access to unlawful platforms under the Information Technology Act, 2000, ensuring that even offshore operators cannot circumvent the ban by targeting Indian users from foreign jurisdictions.
Enforcement mechanism and penalties
The bill establishes a national Online Gaming Authority with comprehensive powers to categorise and register online games, determine whether a game qualifies as a ‘money game,’ address public grievances, and issue guidelines and codes of practice.
To deter violations, the legislation introduces severe punishments, including up to 3 years imprisonment and Rs 1 crore fine for offering online money games, up to two years imprisonment and Rs 50 lakh fine for advertising violations, and up to five years imprisonment and Rs 2 crore fine for repeat offences.
Companies and their officers face corporate liability, though independent directors receive protection if they demonstrate due diligence. Key provisions carry cognisable and non-bailable status, meaning police can arrest without warrants and bail is not automatic, underscoring the government’s serious intent to eliminate predatory gaming practices.
