New Online Gaming Law in India: A Comprehensive Overview

The passage of the Promotion and Regulation of Online Gaming Bill, 2025, by the Lok Sabha signifies a critical development in India’s online gaming sector. This legislation, introduced by Union Minister Ashwini Vaishnaw, aims to regulate and shape the industry, fostering specific areas while imposing restrictions on others. The bill’s primary goals involve promoting the growth of e-sports and educational gaming while prohibiting real-money online gaming. This will have a widespread effect on gaming platforms, fintech payment systems, advertisers, influencers, and gamers across the country. The bill establishes a national regulatory framework focused on: encouraging growth in esports and social or educational gaming; setting regulations for digital gaming platforms and formally acknowledging legitimate games; banning all forms of online real-money gaming, including advertisements and payment transfers; and protecting young people and vulnerable groups from the risks associated with real-money gaming. Key definitions under the bill include ‘Online Game,’ defined as any digital or electronic game played via the internet or electronic devices; ‘Online Money Game,’ a game of skill, chance, or both, where players stake money for cash or equivalent rewards; ‘E-sports,’ recognized competitive digital games based on skill, played without monetary stakes; and ‘Social Games,’ designed for fun, learning, or recreation, with no wagering. Notably, e-sports and social games are exempted from the ban, with the bill aiming to promote their development through institutional support and initiatives. The bill prohibits several activities: providing or enabling any form of online real-money gaming; advertising or promoting real-money games; and money transfers related to online money games. Penalties for violations include potential imprisonment of up to three years, with repeat offenders facing fines of up to Rs 2 crore. The bill also gives authorities the power to conduct searches, make arrests, access physical and digital spaces, and block content on platforms that violate the ban. While the bill places a strict ban on real-money gaming, it promotes the growth of e-sports, which will be officially recognized and supported, and educational and social games. This legislation arises from the rapid expansion of the online gaming industry in India, which has attracted over 400 million users. The government has raised concerns regarding addiction, mental health issues, financial losses, and potential links to illicit activities. The bill, which seeks to supersede state-level regulations, is expected to face legal challenges and may impact various aspects of the economy.