The Promotion and Regulation of Online Gaming Act, 2025 receives President’s assent on August 22, 2025. The legislation provides a comprehensive framework for promoting e-sports, educational, and social gaming, while imposing a nationwide ban on online money games.
The Act prohibits the offering, operation, facilitation, and advertisement of online money gaming services and bars banks and financial institutions from processing related transactions. Offenders face stringent penalties, including imprisonment of up to three years and fines reaching ₹2 crore for repeat violations.
To oversee the sector, the Central Government may establish or designate an Authority on Online Gaming empowered to categorise, register, and regulate online games, handle complaints, and ensure compliance with rules. E-sports and social gaming will receive policy support, institutional development, and integration with broader sporting and educational strategies.
The Act grants the government powers of investigation, search, and blocking of illegal gaming platforms, while safeguarding good-faith regulatory actions. It applies across India and to offshore entities targeting Indian users, ensuring a uniform national framework for responsible digital gaming.
Key Features of the Promotion and Regulation of Online Gaming Act, 2025:
- Comprehensive Framework: Establishes a national legal framework for promoting and regulating the online gaming sector including e-sports, educational games, social gaming, and online money games.
- Prohibition of Online Money Games: Bans offering, facilitating, advertising, and participating in online money games where monetary stakes are involved, especially those operating across state borders or from foreign jurisdictions.
- Establishment of Authority: Creates an Authority responsible for policy coordination, regulatory oversight, recognition, categorization, and registration of online games.
- Protection Measures: Focuses on protecting youth, vulnerable populations, and users from social, economic, psychological, and privacy harms related to online money games.
- Promotion of E-sports and Social Games: Recognizes e-sports as a legitimate sport and promotes online social games for recreational and educational purposes through registration, support, and awareness initiatives.
- Financial Transaction Controls: Prohibits banks and financial institutions from authorizing or facilitating payments related to online money gaming services.
- Offences and Penalties: Imposes strict penalties including imprisonment and hefty fines for violations related to online money gaming, advertising, and illegal financial transactions with enhanced punishment for repeat offenders.
- Investigative Powers: Empowers authorized officers with the power to investigate, search, seize property, and arrest without warrant in relation to offences under the Act.
- Blocking of Online Services: Provides for blocking access to information or services related to online money gaming under the Information Technology Act provisions.
- The Act overrides any conflicting legislation and ensures the uniform application of laws across India.
- Rule-making and Governance: Enables the Central Government to make rules for the implementation of the Act including Authority operations, game registration, and sector promotion.