The Government of India has taken a step to reshape the country’s digital entertainment and regulatory landscape with the passage of the Promotion and Regulation of Online Gaming Bill, 2025. Tabled by Minister for Information & Broadcasting and Electronics & IT, Shri Ashwini Vaishnaw, and passed by both houses of the Parliament, the new law establishes a comprehensive national framework for promoting e-sports and social gaming while outright banning online money-based games.
Key Features of the Act:
• Clear Distinction: The law draws a sharp line between e-sports and online money games. E-sports, which are recognised as competitive skill-based games, will be actively promoted, with the creation of special authorities to guide the sector’s growth, ensure integrity, and foster training, research, and international competitiveness.
• Total Ban on Money Gaming: All forms of online games which require users to pay money or its equivalent in return for the chance of monetary gain, whether based on skill, chance, or both, are now prohibited nationwide. This applies to games such as online rummy, poker, fantasy cricket, and betting-enabling platforms such as Dream11, MyTeam11, RummyCircle, and others.
• Strict Criminal and Financial Penalties: Offering, facilitating, advertising, or even transferring funds for real-money online games will now attract tough punishments, including imprisonment up to three years and fines up to Rs. 2 crore for repeat offences. Offending companies will be liable alongside their directors and responsible officers.
• National Regulatory Authority: An independent statutory Authority will be constituted to regulate permissible forms of online games, oversee e-sports and social/casual games, respond to complaints, and shape policy for the sector’s orderly growth.
• Authority to Block and Prosecute: The Act empowers the government to swiftly block websites, apps, and financial transactions facilitating or advertising banned games, including those operated from offshore jurisdictions, ensuring strong action against evasion and protection of national interests.
The law is intended to protect vulnerable populations, especially youth and low-income groups, from manipulative platforms and addictive game design. The Act also resolves regulatory confusion arising from state-by-state gaming regulations and brings all forms of online gaming within a unified national legal framework.
While Prime Minister Narendra Modi and IT Minister Ashwini Vaishnaw have lauded the Bill as a transformative measure to boost India’s goal of becoming an e-sports leader and digital power while safeguarding society, the real-money gaming industry and several startup founders have expressed concern over potential economic losses and job cuts.
Critics argue that the move will impact thousands of jobs and could drive offshore operations underground, while supporters point to the urgent need for leveraging India’s youthful digital talent in positive and globally competitive ways. Many in the public, mental health, and education sectors have welcomed the strong message against digital gambling.
The law, once notified, will come into effect pan-India and apply to all online gaming service providers, regardless of whether they operate physically in India or digitally from abroad. The government is expected to roll out the new Regulatory Authority in the coming months and issue supporting rules and guidelines for e-sports and social gaming recognition.
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