- Published on
Lok Sabha Passes the Promotion and Regulation of Online Gaming Bill, 2025
- Authors
- Name
- Jagadish V Gaikwad
Introduction
The Lok Sabha passed the Promotion and Regulation of Online Gaming Bill, 2025 on August 20, 2025, in a landmark move to regulate India's rapidly expanding online gaming sector. The bill seeks to both promote e-sports and online social gaming as important engines of digital innovation and creativity, while imposing a total ban on real-money gaming, betting, and gambling activity. Below is a detailed breakdown of the Act, its objectives, key provisions, and what it means for India's online gaming landscape.
Background and Rationale
- India’s online gaming ecosystem has witnessed explosive growth, with segments including e-sports, casual and social games, educational games, and online money games.
- The bill was necessitated by the absence of a dedicated national framework, with existing regulation split between various state laws or simply lacking for online activity.
- Online money gaming platforms have frequently been linked to financial fraud, money laundering, addiction, mental distress, and even threats to national security.
- The government envisions supporting e-sports and skill-enhancing social gaming while saving the youth and vulnerable groups from the hazards of compulsive real-money gaming.
Key Objectives
- Regulate and advance e-sports, educational games, and safe social gaming, harnessing them for skill development, job creation, and digital innovation.
- Absolutely prohibit real-money games, including all forms of online gambling, betting, fantasy sports, poker, rummy, lotteries, and any platform involving monetary stakes, regardless of whether the outcome depends on chance or skill.
- Establish a central authority for coordinated policy, sectoral research, and regulatory oversight.
Definitions Under the Bill
| Term | Meaning |
|---|---|
| Online Game | Any game played on an electronic device operated as software, accessible via the internet or any electronic network. |
| E-Sport | Recognised competitive digital contest played as part of multi-sport events, where outcomes are determined solely by skill (no betting element). |
| Online Social Game | Games played for entertainment or education, without staking money or expecting monetary gain. |
| Online Money Game | Any online game, whether of skill or chance or both, where users deposit money (or equivalent stakes) in expectation of monetary or tangible returns. |
Key Provisions
1. Promotion of E-sports and Social Gaming
- E-sports recognised as legitimate sport, support for event guidelines, training academies, research, and incentives.
- Government to promote online social and educational games, registering age-appropriate, safe content and fostering digital skills.
2. Absolute Prohibition of Real-Money Games
- No person or company can offer, facilitate, promote, advertise, or participate in online money gaming.
- Prohibition extends to payment gateways and banks: no financial institution may process transactions for banned platforms.
3. Advertising and Sponsorship Ban
- All advertising, influencer marketing, and sponsorship of online money games is forbidden in any medium.
4. Establishment of a Regulatory Authority
- A central Authority will be set up to:
- Register and categorise permissible games;
- Respond to complaints;
- Oversee guidelines and enforcement.
5. Penalties for Violations
| Offence | First Violation | Repeated Violation |
|---|---|---|
| Offering/facilitating real-money gaming | Up to 3 years imprisonment and/or fine up to ₹1 crore | 3-5 years imprisonment & fine of ₹1–2 crore |
| Advertising prohibited games | Up to 2 years imprisonment and/or fine up to ₹50 lakh | 2-3 years imprisonment & fine of ₹50 lakh–₹1 crore |
| Payment facilitation | Up to 3 years imprisonment and/or fine up to ₹1 crore | 3-5 years imprisonment & fine of ₹1–2 crore |
All offences related to real-money gaming and financial facilitation are made cognizable and non-bailable.
Enforcement Tools and Powers
- Authority and designated government officers can investigate, search, and seize digital property used in illegal gaming.
- Offenders, whether companies or individuals, are liable. Senior management held liable except for those proving lack of knowledge or due diligence.
- The Central Government can block access to prohibited games, platforms, and content.
Implications for Stakeholders
- E-sports sector will benefit from clear legitimacy and government support, including integration with sports federations and participation in youth games.
- Social and educational game developers gain from a formal registration mechanism and clearer avenues for promotion.
- Real-money gaming companies must cease all Indian operations, including advertising and use of Indian payment systems, or face severe criminal penalties. Offshore entities will not be able to circumvent regulation.
Conclusion
The Promotion and Regulation of Online Gaming Bill, 2025, represents a major new chapter for digital policy in India. By clearly demarcating between positive forms of gaming (e-sports, educational, and social games) and dangerous, addictive or criminalized real-money gaming, the bill aims to nurture innovation and creativity while robustly protecting youth, families, and national interests.
This is a commendable and timely step taken by the government, demonstrating its commitment to safeguarding citizens and supporting the growth of healthy, skill-based digital industries in India.
For full legal text, refer to the act as introduced in Lok Sabha, Bill No. 110 of 2025.