President Assents to the Promotion and Regulation of Online Gaming Bill

Promotion and Regulation of Online Gaming Bill, 2025

Presidents Assent Received on 26 August 2025

Press Note Released by PIB: 21 August 2025

Cleared by Parliament on 20 August 2025

I. Background:

• Online gaming has grown into a huge industry ranging from e-sports and educational games to real-money gambling platforms. However, there has been an alarming rise in:

  • Addiction and mental health issues,

  • Financial distress and family breakdowns,

  • Consumer fraud and deceptive advertisements, and

  • National security and money laundering concerns.

• At the same time, e-sports and non-monetary educational/social games are seen as key parts of India's digital economy and youth development goals. The Government aims to regulate this duality with a national framework that clearly bans what is harmful and promotes what is beneficial.

II. Key Features of the Bill - Dual Purpose:

• Ban: Online money games (whether based on skill or chance) where users stake money or equivalents in expectation of winning.

• Promote: Safe e-sports and social/educational games that do not involve wagering.

III. Applicability

• The Bill extends to the whole of India.

• It also applies to any online gaming service offered in India or operated from outside India that targets Indian users.

IV. Prohibition of Online Money Games

• What is prohibited?

  Offering or facilitating online money games, Advertising or promoting online money games, Payment processing for online money games (banks, wallets, payment gateways etc.)

• What is an Online Money Game?

  Any game: Played online or via electronic communication, Involves staking money or equivalents (like virtual tokens), Played in expectation of winning money or similar gain.

  Importantly, this applies to both games of skill and chance, as long as there's staking and a promise of return.

V. Promotion of E-sports and Online Social Games

• E-Sports:

  Recognised as a legitimate competitive sport.

  To be governed under sports frameworks and receive policy support:

• Online Social & Educational Games:

  Games without wagering or money-based rewards.

  Can charge subscription or access fees (but not stakes).

  To be registered and promoted by the Government.

VI. Constitution of Online Gaming Authority

A new National Authority (or a designated existing one) will be established.

• Authority’s powers:

  Classify games (money game vs social game)

  Register e-sports and social games

  Issue codes, rules, and safety guidelines

  Address consumer grievances

VII. Offences and Penalties

• Offence: Offering online money games / Payment processing

  First Time: Up to 3 years jail + Rs. 1 crore fine

  Repeat Offence: 3–5 years jail + Rs. 1–2 crore fine

• Offence: Advertising / Promoting

  First Time: Up to 2 years jail + Rs. 50 lakh fine

  Repeat Offence: 2–3 years jail + Rs. 50 lakh – 1 crore fine

• Some offences are cognisable (police can arrest without a warrant) and non-bailable.

• Corporate responsibility - Companies and their officers will be held accountable for the offenses, with carve-outs for independent/non-executive directors, if they can show that they acted with due diligence.

VIII. Enforcement Mechanism

• Investigation: Authorised officers from Central/State Govts or Authority can conduct searches.

• Arrest without warrant of any person who is reasonably suspected of having committed, of committing or about to commit these offenses.

• Blocking access to unlawful platforms using powers under the Information Technology Act, 2000 ('IT Act').

• Digital evidence can be seized from apps, portals, or cloud servers.

IX. Complementary Provisions and Ongoing Measures

The Bill complements existing laws and frameworks:

• Information Technology Act, 2000 and Related Rules

  Online gaming intermediaries must ensure unlawful or illegal content is not shared on their networks. 

  Section 69A of the IT Act empowers the Government to block access to illegal websites or links.

• Integrated Goods and Services Tax Act, 2017 (IGST Act)

  Online money gaming suppliers must register under the Simplified Registration Scheme.

  The Directorate General of GST Intelligence is authorised to direct intermediaries to block access to unregistered or non-compliant gaming platforms.

• Consumer Protection Act, 2019

  The Central Consumer Protection Authority (CCPA) has powers to investigate, penalise and take criminal action against offenders.

• Reporting of Cybercrimes 

  Citizens can report cybercrime on the National Cyber Crime Reporting Portal (www.cybercrime.gov.in). 

  A toll-free helpline, 1930, is available for quick reporting of online scams and fraud.

• Bharatiya Nyaya Sanhita, 2023

  Prescribes penal provisions for unauthorised betting/gambling, where offenders face a minimum of one year imprisonment, extendable up to seven years, along with fines.

Advantages of the Bill

• Bright-line national rule: Ends ambiguity on what’s legal.

• Protects consumers, families, and youth from addiction and fraud.

• Promotes innovation: E-sports and educational games now get mainstream support.

• Global model: Sets India apart with clear digital gaming norms.

Challenges Ahead

• Overbroad ban: May unintentionally impact skill-based real-money games like fantasy sports.

• Grey monetisation zones: Some games may blur the lines between stakes and access fees.

• Implementation complexity: Needs proper training of enforcement agencies and payment gatekeepers.

• Developer clarity: Detailed rules and authority notifications are awaited.

Final Word

The Promotion and Regulation of Online Gaming Bill, 2025 is India’s first comprehensive law on digital gaming. It aims to clean up toxic gaming practices while nurturing e-sports and safe entertainment.

Much will depend on how the Government operationalises this framework in the coming months. The effectiveness of the new law hinges on the timely notification of the Online Gaming Authority, the clarity and precision with which it frames rules for classification and registration of different types of games, and its ability to strike the right balance between robust regulation and continued innovation in India’s fast-evolving digital gaming ecosystem.